Coronavirus: JLR Midlands plant to stay shut until August
The Midlands site where F-TYPE Jaguars are made will remain closed until at least mid-August, Sky News learns.
Friday 5 June 2020 13:46, UK
One of Jaguar Land Rover's key British plants will remain closed until at least mid-August as the industry grapples with sluggish demand amid the COVID-19 crisis.
Sky News understands that JLR, Britain's biggest carmaker, has informed suppliers that its Castle Bromwich site in the Midlands will not resume production until 10 August at the earliest.
The extended shutdown at the plant, which produces Jaguar XE, XF and F-Type Jaguars, reflects torrid conditions across the sector, with Bentley Motors becoming the latest manufacturer to confirm permanent job losses on Friday.
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JLR, which is owned by the Indian group Tata Motors, said the bulk of returning consumer demand for its cars is taking place in China, where it manufactures the XEL and XFL models for the local market.
Castle Bromwich, which is the base for just over 2,000 JLR employees, has also been designated as the production site for the all-electric Jaguar XJ.
The company's timetable for resuming production at its factories around the world has caused anxiety among some suppliers, but reflects the stuttering nature of demand for cars among consumers.
A JLR spokeswoman said on Friday: "Small pockets of business-critical activity are taking place at Castle Bromwich as Jaguar Land Rover prepares for new model year introductions.
"In China, we are beginning to see recovery in vehicle sales and customers are returning to our showrooms.
"Our joint venture plant in China resumed production in the middle of February.
"As countries are relaxing distancing guidelines and retailers are reopening around the world, we will confirm the restart of production at our other plants in due course.
"We continue to monitor the COVID-19 situation and follow the guidance of all relevant authorities in the markets in which we operate."
JLR is developing its plans as the company continues talks with the government about a massive taxpayer support package.
The negotiations, which Sky News revealed last month, are understood to be aimed at securing funding worth as much as £2bn.
JLR employs approximately 38,000 people in the UK, operating three main production sites: at Castle Bromwich and Solihull in the Midlands, and Halewood on Merseyside.
Approximately 20,000 of its employees have been furloughed under the government's emergency wage subsidy programme, although about 2000 employees at the Solihull site returned to work last month.
More than 4,000 automotive industry jobs - at Aston Martin Lagonda, Bentley, car dealer Lookers and McLaren Group - have been lost in the last fortnight alone.