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| Ford and JLR to cut thousands of jobs; John Lewis bonus at risk - business live | Ford and JLR to cut thousands of jobs; John Lewis bonus at risk - business live |
| (35 minutes later) | |
| Dame Caroline Spelman (MP for Meriden) and Jack Dromey (MP for Birmingham Erdington), who both have many Jaguar Land Rover workers in their constituencies, have issued a statement on the JLR job cuts. | |
| “It is, of course, bad news that Jaguar Land Rover is being forced to make further job cuts. | |
| Since Tata took over the company in 2008, it has gone from strength to strength, creating thousands of jobs in Meriden, Erdington and across many other areas of the UK, transforming the lives of tens of thousands of local people | |
| However, recent years have been difficult. Falling sales in China due to global trade wars as well as changing consumer attitudes to diesel vehicles have been damaging. | |
| These difficulties have been compounded by the continuing uncertainty over Brexit. | |
| Unfortunately, as we get ever closer to March 29, it becomes clearer that if we crashed out of the EU without a deal, announcements like today’s would become widespread and would be devastating for British manufacturing.” | |
| Unions are urging the government to provide more assistance for the car industry. | Unions are urging the government to provide more assistance for the car industry. |
| Unite national officer Des Quinn says workers at JLR have endured “a great deal of uncertainty over recent months,” adding: | Unite national officer Des Quinn says workers at JLR have endured “a great deal of uncertainty over recent months,” adding: |
| “With record levels of new investment and models set to come on stream in its UK factories we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain’s manufacturing crown. | “With record levels of new investment and models set to come on stream in its UK factories we look for Jaguar Land Rover to continue to be a global success and the jewel in Britain’s manufacturing crown. |
| “Britain’s car workers have been caught in the crosshairs of the Government’s botched handling of Brexit, mounting economic uncertainty and ministers’ demonisation of diesel, which along with the threat of a no-deal Brexit, is damaging consumer confidence. | “Britain’s car workers have been caught in the crosshairs of the Government’s botched handling of Brexit, mounting economic uncertainty and ministers’ demonisation of diesel, which along with the threat of a no-deal Brexit, is damaging consumer confidence. |
| JLR’s sweeping job cuts follow a double-whammy of problems, with Brexit uncertainty adding an extra garnish. | JLR’s sweeping job cuts follow a double-whammy of problems, with Brexit uncertainty adding an extra garnish. |
| The carmaker has been badly hit by the diesel crisis, which began in 2015 when German manufacturer Volkswagen was caught cheating on its emissions tests. That scandal has dented demand for diesel (UK sales fell 30% last year. | The carmaker has been badly hit by the diesel crisis, which began in 2015 when German manufacturer Volkswagen was caught cheating on its emissions tests. That scandal has dented demand for diesel (UK sales fell 30% last year. |
| That’s a huge blow to JLR, as 90% of its vehicles ran on the fuel. Critics say it was relatively slow to embrace electric cars - a move that is now looking critical, with some cities considering banning diesel, and even petrol, cars in the years ahead. | That’s a huge blow to JLR, as 90% of its vehicles ran on the fuel. Critics say it was relatively slow to embrace electric cars - a move that is now looking critical, with some cities considering banning diesel, and even petrol, cars in the years ahead. |
| JLR is also vulnerable to the slowdown in China. Donald Trump’s trade war has hurt the Chinese economy - yesterday we learned that car sales in China fell in 2018, for the first time in at least two decades. Economists fear a ‘hard landing’ in China that could crush consumer demand, and send ripples through the global economy. | JLR is also vulnerable to the slowdown in China. Donald Trump’s trade war has hurt the Chinese economy - yesterday we learned that car sales in China fell in 2018, for the first time in at least two decades. Economists fear a ‘hard landing’ in China that could crush consumer demand, and send ripples through the global economy. |
| Plus there’s uncertainty over Britain’s exit from the EU. UK car sales also fell last year, for the second year running. | Plus there’s uncertainty over Britain’s exit from the EU. UK car sales also fell last year, for the second year running. |
| Today’s disappointing Christmas trading figures from John Lewis and Marks & Spencer have highlighted that shoppers are being cautious. Plus the car industry is very dependant on ‘just-in-time’ supply chains, which would be hurt by trade friction at the UK border. | Today’s disappointing Christmas trading figures from John Lewis and Marks & Spencer have highlighted that shoppers are being cautious. Plus the car industry is very dependant on ‘just-in-time’ supply chains, which would be hurt by trade friction at the UK border. |
| The JLR story is bigger than Brexit, but make no mistake global trade wars and massive supply chain and customs uncertainty have made it worse. | The JLR story is bigger than Brexit, but make no mistake global trade wars and massive supply chain and customs uncertainty have made it worse. |
| Here’s the details of JLR’s new investment in electric car technology, announced alongside its job cuts plan. | Here’s the details of JLR’s new investment in electric car technology, announced alongside its job cuts plan. |
| Later this year, next-generation Electric Drive Units (EDU) will be produced at the company’s Engine Manufacturing Centre in Wolverhampton. These EDUs will be powered by batteries assembled at a new Jaguar Land Rover Battery Assembly Centre located at Hams Hall, North Warwickshire, reinforcing the company’s commitment to the West Midlands and the UK. | Later this year, next-generation Electric Drive Units (EDU) will be produced at the company’s Engine Manufacturing Centre in Wolverhampton. These EDUs will be powered by batteries assembled at a new Jaguar Land Rover Battery Assembly Centre located at Hams Hall, North Warwickshire, reinforcing the company’s commitment to the West Midlands and the UK. |
| “The Battery Assembly Centre will be one of the largest of its kind in the UK, using new production techniques and technologies to manufacture battery packs for future Jaguar and Land Rover vehicles. | “The Battery Assembly Centre will be one of the largest of its kind in the UK, using new production techniques and technologies to manufacture battery packs for future Jaguar and Land Rover vehicles. |
| JLK is planning to begin a voluntary redundancy programme in the UK, to remove layers of management. | JLK is planning to begin a voluntary redundancy programme in the UK, to remove layers of management. |
| It says: | It says: |
| “This strategic review will create a leaner, more resilient organisation with a flatter management structure.” | “This strategic review will create a leaner, more resilient organisation with a flatter management structure.” |
| CEO Ralf Speth has also promised that JLR will deliver “a future range of British-built electric vehicles”. | CEO Ralf Speth has also promised that JLR will deliver “a future range of British-built electric vehicles”. |
| Many of JLR’s UK job cuts will affect management roles, including at its sites in Coventry and Gaydon, Warwickshire. | Many of JLR’s UK job cuts will affect management roles, including at its sites in Coventry and Gaydon, Warwickshire. |
| BREAKING: Jaguar Land Rover have confirmed that they, like Ford, are cutting jobs...and the axe will fall heavily on the UK. | BREAKING: Jaguar Land Rover have confirmed that they, like Ford, are cutting jobs...and the axe will fall heavily on the UK. |
| JLR plans to cut around 4,500 roles around the globe, as part of a major cost-cutting programme designed to save £2.5bn. | JLR plans to cut around 4,500 roles around the globe, as part of a major cost-cutting programme designed to save £2.5bn. |
| JLR says it is responding to “multiple” geopolitical and regulatory disruptions (eg China’s slowing economy), and to the technology changes facing the sector (such as the move to electric and self-driving cars). | JLR says it is responding to “multiple” geopolitical and regulatory disruptions (eg China’s slowing economy), and to the technology changes facing the sector (such as the move to electric and self-driving cars). |
| Chief executive Ralf Speth says: | Chief executive Ralf Speth says: |
| “We are taking decisive action to help deliver long-term growth in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry.” | “We are taking decisive action to help deliver long-term growth in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry.” |
| JLR, which employs about 40,000 people in Britain, has also announced a new battery assembly centre at Hams Hall near Birmingham, and will begin producing electric drive units at its Wolverhampton engine plant. | JLR, which employs about 40,000 people in Britain, has also announced a new battery assembly centre at Hams Hall near Birmingham, and will begin producing electric drive units at its Wolverhampton engine plant. |
| The looming job cuts at Jaguar Land Rover have been raised over at parliament. | The looming job cuts at Jaguar Land Rover have been raised over at parliament. |
| Theresa May’s spokesman has told reporters that JLR sees the UK as “home”, and is committed to the country, saying: | Theresa May’s spokesman has told reporters that JLR sees the UK as “home”, and is committed to the country, saying: |
| “JLR have been very clear that they regard the UK as home and are investing in the future to develop the next generation of vehicles. | “JLR have been very clear that they regard the UK as home and are investing in the future to develop the next generation of vehicles. |
| We will continue to work closely with the company to support their long-term plans. | We will continue to work closely with the company to support their long-term plans. |
| That doesn’t rule out some layoffs, though.... | That doesn’t rule out some layoffs, though.... |
| Ford has also warned that the European market is tough - persistently so - meaning sweeping changes are needed. | Ford has also warned that the European market is tough - persistently so - meaning sweeping changes are needed. |
| The FT’s Peter Campbell has the details: | The FT’s Peter Campbell has the details: |
| Armstrong on European market: We're seeing softening in some markets, like the UK, it's tough from a competitiveness position. That's why we need to think about how we're going to compete in the future. | Armstrong on European market: We're seeing softening in some markets, like the UK, it's tough from a competitiveness position. That's why we need to think about how we're going to compete in the future. |
| Steve: "Ford of Europe has never really been sustainably profitable. This was not a one-time policy. We can only allocate capital to places we're going to get a return." | Steve: "Ford of Europe has never really been sustainably profitable. This was not a one-time policy. We can only allocate capital to places we're going to get a return." |
| Armstrong says likely to have specifics of cuts around second quarter/into the middle of the year. | Armstrong says likely to have specifics of cuts around second quarter/into the middle of the year. |
| Ford is holding a conference call with journalists now. | Ford is holding a conference call with journalists now. |
| On it, European chief Steven Armstrong has warned that further job cuts might be needed if Britain crashes out of the EU without a deal. | On it, European chief Steven Armstrong has warned that further job cuts might be needed if Britain crashes out of the EU without a deal. |
| First Q - "I have ask...does Brexit colour your view of the UK operation?"Armstrong: "If we get wrong result, then expect that results will be significantly more dramatic. This is fix the base business." | First Q - "I have ask...does Brexit colour your view of the UK operation?"Armstrong: "If we get wrong result, then expect that results will be significantly more dramatic. This is fix the base business." |
| 👆🚨🚨 THIS IS SIGNIFICANT 🚨🚨 | 👆🚨🚨 THIS IS SIGNIFICANT 🚨🚨 |
| Economist Andrew Sentance says the job cuts at Ford and JLR are part of a broader trend towards automation: | Economist Andrew Sentance says the job cuts at Ford and JLR are part of a broader trend towards automation: |
| Latest wave of job cuts in manufacturing (Ford, JLR) is no great surprise. Manufacturing jobs will continue to decline as automation (robots) take over and 90pc jobs will be in services industries by 2030. Ford to cut thousands of jobs in turnaround plan https://t.co/BCAknVNPQf | Latest wave of job cuts in manufacturing (Ford, JLR) is no great surprise. Manufacturing jobs will continue to decline as automation (robots) take over and 90pc jobs will be in services industries by 2030. Ford to cut thousands of jobs in turnaround plan https://t.co/BCAknVNPQf |
| In other blow to Europe’s auto sector, Jaguar Land Rover is set to announce heavy job losses too. | In other blow to Europe’s auto sector, Jaguar Land Rover is set to announce heavy job losses too. |
| A source familiar with the plans has told us the redundancies were likely to affect “white-collar” workers the most, with the majority of UK job reductions achieved via voluntary redundancies. | A source familiar with the plans has told us the redundancies were likely to affect “white-collar” workers the most, with the majority of UK job reductions achieved via voluntary redundancies. |
| Jaguar Land Rover and Ford to axe thousands of jobs | Jaguar Land Rover and Ford to axe thousands of jobs |
| Here are more details of Ford’s cost-cutting plans -- including likely job losses in the UK: | Here are more details of Ford’s cost-cutting plans -- including likely job losses in the UK: |
| Production at the Ford Aquitaine Industries plant in Bordeaux, France, which manufactures small automatic transmissions, will end in August 2019. | Production at the Ford Aquitaine Industries plant in Bordeaux, France, which manufactures small automatic transmissions, will end in August 2019. |
| Formal discussions have begun between Ford and its Works Council to end production of the C-MAX and Grand C-MAX at the Saarlouis Body and Assembly Plant in Germany as the compact MPV segment shrinks in Europe. | Formal discussions have begun between Ford and its Works Council to end production of the C-MAX and Grand C-MAX at the Saarlouis Body and Assembly Plant in Germany as the compact MPV segment shrinks in Europe. |
| Ford is undertaking a strategic review of Ford Sollers, its joint venture in Russia. Several significant restructuring options for Ford Sollers are being considered by Ford and its partner, Sollers PJSC. A decision is expected in the second quarter. | Ford is undertaking a strategic review of Ford Sollers, its joint venture in Russia. Several significant restructuring options for Ford Sollers are being considered by Ford and its partner, Sollers PJSC. A decision is expected in the second quarter. |
| Ford plans to consolidate its UK headquarters and Ford Credit Europe’s headquarters at the Ford Dunton Technical Center in South East Essex to improve business fitness and create a customer-centric technical hub. The action is subject to union consultation and local approvals. | Ford plans to consolidate its UK headquarters and Ford Credit Europe’s headquarters at the Ford Dunton Technical Center in South East Essex to improve business fitness and create a customer-centric technical hub. The action is subject to union consultation and local approvals. |
| It’s official.... | It’s official.... |
| We are taking decisive action to make #Ford sustainably profitable in Europe, working collectively with all stakeholders to deliver a more focused line-up of European-built passenger vehicles, while growing our import and commercial vehicle businesses. https://t.co/39tgKKt8gs | We are taking decisive action to make #Ford sustainably profitable in Europe, working collectively with all stakeholders to deliver a more focused line-up of European-built passenger vehicles, while growing our import and commercial vehicle businesses. https://t.co/39tgKKt8gs |