• Saturday, April 27, 2024

Business

Jaguar Land Rover to shut UK car plants for a week

JLR’s parent company said the outbreak has hit JLR’s retail sales in the Asian country and is likely to lower the luxury carmaker’s full year earnings before interest and tax (EBIT) margin (Photo: OLI SCARFF/AFP/Getty Images).

By: Radhakrishna N S

BRITAIN’S largest carmaker Jaguar Land Rover (JLR) will shut all its UK plants for seven days in November.

The latest decision was made to lessen the impact of Brexit scheduled for October 31.

JLR chief executive Ralf Speth was quoted by the Telegraph: “We cannot think about it, we just have to do it.

“We have to close – think about the process. We can’t switch it on and off, I need 10 million to 20 million parts a day and that means I have to make a commitment to my suppliers”.

The purchases of parts would also be stopped for the week.

“It’s the same as we did in April,” Speth added, referring to an earlier shutdown around the expected but postponed Brexit date of March 31.

The company has to stop producing cars for its logistical protection, chief executive said.

He further noted that even if Brexit was postponed again, the business was committed to the closure.

The Tata Motors-owned firm has plants at Halewood, Castle Bromwich, Solihull, and Wolverhampton.

Speth refused to comment further on Britain’s scheduled departure from the European Union.

The loss-making car manufacturer is moving ahead with its £2.5 billion cost-cutting measures.

In 2018, JLR sold 592,708 vehicles in 128 countries.

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