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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