Vidya Ram Jaguar Land Rover (JLR) is to move the entire production of its forthcoming Land Rover Discovery to Slovakia from the UK, in a major revamp of its manufacturing processes, British media reported on Monday.
The shift to the recently opened Slovakian plant will result in several hundred job losses among agency workers, putting the company’s previously stated concerns about Brexit in the spotlight. While the company has said it will be investing further in Solihull, where the new Range Rover and Range Rover Sports will be built, the announcement was seized upon by critics of Brexit, who argued it pointed to the impact that concerns around Britain’s exit from the EU was already having on business and investment decisions. “The automotive industry has been warning of the dangers facing their sector and now it appears the reality of Brexit is settling in. Jobs have already gone in a number of car factories,” said campaign group Best for Britain.
In April, JLR announced a temporary cut in production and job losses at its Solihull and Castle Bromwich plants, pointing to “continuing headwinds” facing the car industry.
“The decision to move the Land Rover Discovery to Slovakia and the potential losses of some agency employed staff in the UK is a tough one but forms part of our long-term manufacturing strategy as we transform our business globally,” Jaguar Land Rover said in a statement quoted by Bloomberg on Monday. The investment into Solihull would also include enabling the production of electrical vehicles it said.
In May, JLR announced a slight fall in pre-tax profits for the year ending in March (while pre tax profits for the quarter ending March fell sharply), pointing to “external headwinds.” The company and industry body SMMT have repeatedly pointed to the pressures from Brexit as well as Britain’s policy on diesel cars, including the introduction of levies on the sale of new diesel vehicles.