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Tata Confirms It Will Close Jaguar Or Land Rover Plant

 
4 2,808 views Sep 24, 2009
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Despite Jaguar unveiling stunning new models such as the 2010 XF and XK range, and sales of the Range Rover luxury SUV still going strong, the Jaguar Land Rover duo was still unable to turn a profit for 2008, even coming from a positive start to the year, and 2009 looks to be no different.

Tata, parent company to the premium British brands, remains confident that both will eventually be profitable but admits drastic cutbacks need to be implemented. Today, the Indian conglomerate confirmed that it will close one of the three Jaguar Land Rover assembly plants in the UK by 2014 in a bid to move the money-losing British unit into profitability.

No final decision has been made but the company stated that it will either close a factory in Castle Bromwich, which makes Jaguars, or a site in Solihull, which makes Land Rover models. The bean-counters are currently reviewing which plant should be closed and are expected to make a decision by the first half of next year.

The Castle Bromwich site employs around 2,000 staff while Solihull makes do with almost 5,000.

It’s not all bad news as Tata will essentially be consolidating the two plants into one, although job losses will be significant. Furthermore, Tata has stated that there will be no compulsory layoffs and new jobs will be created at the Halewood factory in 2011 when its starts building the upcoming 2012 Range Rover LRX.

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Comments (4)

  1. By  My Wheels On Walls Posted: 9/24/2009 8:48pm PDT

    Its about time! Even with X-type they had one to many factories but Ford had negotiated with the unions to keep the additional factory. Now with new ownership that deal no longer exists and Jaguar/Land Rover can write numbers on a balance sheet using black ink.... Ofcourse the unions will piss and moan but they knew in the first place they were bleeding the company dry just to keep its members happy.
     
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  2. By NoNameDenton Posted: 9/25/2009 5:35pm PDT

    Wheels is right, Ford gave in too the British unions and combined with stale styling kept Jag back from being as great as it could be.
     
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  3. By Al Habib Posted: 9/27/2009 4:24am PDT

    Tata will eventually manufacture most parts in cheap labour factories located in India and ship them to UK assembly plants to retain the "Britishness" of Jaguar /Land Rover brands. What terrifies me is the design of those two European luxury brands does not get diluted with Indian taste.
     
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  4. By Al Habib Posted: 9/27/2009 4:31am PDT

    Tata will eventually manufacture most parts in cheap labour factories located in India and ship them to UK assembly plants to retain the "Britishness" of Jaguar /Land Rover brands. What terrifies me is the design of those two European luxury brands does not get diluted with Indian taste.
     
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