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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) | |
| More car news. Japanese carmaker Honda will halt UK production for six days in April due to Brexit logistics and border disruption, according to Sky News. | |
| Honda typically holds just one hour’s worth of parts at its factory in Swindon, so new friction at the UK border would be a big problem. Last year, it told MPs last year that every 15 minutes of customs delays would cost some manufacturers up to £850,000 a year. | |
| Honda to stop production for six days after Brexit https://t.co/XPZmWKt9yH | |
| Andy Street, West Midlands mayor, is hopeful that JLR will remain committed to the UK, despite its heavy job cut plans. | Andy Street, West Midlands mayor, is hopeful that JLR will remain committed to the UK, despite its heavy job cut plans. |
| He also fears deeper job cut, if a Brexit deal isn’t agreed in time. | He also fears deeper job cut, if a Brexit deal isn’t agreed in time. |
| Today’s news will be particularly difficult for the Jaguar Land Rover workers and their families affected by this announcement. The decline in sales and job losses are disappointing given the vital importance of JLR to the West Midlands economy. | Today’s news will be particularly difficult for the Jaguar Land Rover workers and their families affected by this announcement. The decline in sales and job losses are disappointing given the vital importance of JLR to the West Midlands economy. |
| Nevertheless, I am confident Jaguar Land Rover will be a critical part of our region’s future success. I know the Tata Group and JLR are committed to manufacturing in the West Midlands and to developing a new generation of electric and hybrid vehicles. | Nevertheless, I am confident Jaguar Land Rover will be a critical part of our region’s future success. I know the Tata Group and JLR are committed to manufacturing in the West Midlands and to developing a new generation of electric and hybrid vehicles. |
| The billions of pounds invested in recent years, the current £500m investment in Solihull, and the new announcements today of the Battery Assembly Centre at Hams Hall and the investment in Electric Drive Unit production at Wolverhampton are clear evidence of that commitment. | The billions of pounds invested in recent years, the current £500m investment in Solihull, and the new announcements today of the Battery Assembly Centre at Hams Hall and the investment in Electric Drive Unit production at Wolverhampton are clear evidence of that commitment. |
| I am working closely with local authorities and the Government to support Jaguar Land Rover as they make the move to building electric and hybrid vehicles. | I am working closely with local authorities and the Government to support Jaguar Land Rover as they make the move to building electric and hybrid vehicles. |
| In the last 18 months, we have supported the long-term future of the West Midlands car industry with significant public investments in the UK BatteryIndustrialisation Centre, 5G and autonomous vehicle testbeds, and the UKMobility Data Centre. | In the last 18 months, we have supported the long-term future of the West Midlands car industry with significant public investments in the UK BatteryIndustrialisation Centre, 5G and autonomous vehicle testbeds, and the UKMobility Data Centre. |
| Though the challenges faced by JLR are global issues, such as declining sales in China and declining diesel sales, this news acts as a reminder that it is vitally important to the West Midlands of securing a Brexit deal which allows frictionless trade between the UK and the EU. | Though the challenges faced by JLR are global issues, such as declining sales in China and declining diesel sales, this news acts as a reminder that it is vitally important to the West Midlands of securing a Brexit deal which allows frictionless trade between the UK and the EU. |
| JLR’s Ralf Speth is being quizzed about Brexit. | JLR’s Ralf Speth is being quizzed about Brexit. |
| Speth says he doesn’t know what will happen in March, but there will be “huge implications” if a hard Brexit occurs. | Speth says he doesn’t know what will happen in March, but there will be “huge implications” if a hard Brexit occurs. |
| He also concedes that Brexit is a factor behind today’s announcement, pointing out that UK car sales have fallen 7% in the last year. China and diesel are bigger issues, though, | He also concedes that Brexit is a factor behind today’s announcement, pointing out that UK car sales have fallen 7% in the last year. China and diesel are bigger issues, though, |
| Asked if JLR is hoarding parts in preparation for Brexit disruption, Speth says it is stockpiling, but enough for a few days not several weeks. | Asked if JLR is hoarding parts in preparation for Brexit disruption, Speth says it is stockpiling, but enough for a few days not several weeks. |
| Q: Is JLR stockpiling? Speth: JLR has 25m parts a day. JLR is stockpiling in "days, not weeks", and says variance of customer orders makes it difficult to stockpile far in advance. | Q: Is JLR stockpiling? Speth: JLR has 25m parts a day. JLR is stockpiling in "days, not weeks", and says variance of customer orders makes it difficult to stockpile far in advance. |
| Jaguar Land Rover boss Ralf Speth is holding a conference call with journalists now. | Jaguar Land Rover boss Ralf Speth is holding a conference call with journalists now. |
| On it, he says: | On it, he says: |
| JLR is committed to growing its UK business; the company is, and will remain, a British company | JLR is committed to growing its UK business; the company is, and will remain, a British company |
| It faces three serious challenges: the slowdown in China, the fall in diesel sales, and Brexit (as explained earlier). | It faces three serious challenges: the slowdown in China, the fall in diesel sales, and Brexit (as explained earlier). |
| The restructuring, and 4,500 job cuts, announced today will create a leaner organisation, reducing costs and allowing faster decision making. | The restructuring, and 4,500 job cuts, announced today will create a leaner organisation, reducing costs and allowing faster decision making. |
| On the job cuts, Speth says JLR is already consulting with unions about voluntary redundancy, and early retirement packages. | On the job cuts, Speth says JLR is already consulting with unions about voluntary redundancy, and early retirement packages. |
| There’s retail gloom on both sides of the Atlantic today. | There’s retail gloom on both sides of the Atlantic today. |
| US retail group Macy has sent shockwaves through Wall Street today by reporting weak sales over the Christmas holiday period, forcing it to cut its 2018 earnings outlook. | US retail group Macy has sent shockwaves through Wall Street today by reporting weak sales over the Christmas holiday period, forcing it to cut its 2018 earnings outlook. |
| This has sent Macy’s shares plunging by 18%, with other retails also suffering as traders worry that US consumers are cutting back. | This has sent Macy’s shares plunging by 18%, with other retails also suffering as traders worry that US consumers are cutting back. |
| US retail getting taken out to the wood chipperMacy's -18%Kohl's -8.5%Nordstrom -8.5%Target -4.5%Abercrombie and Fitch -11%JC Penney -5% | US retail getting taken out to the wood chipperMacy's -18%Kohl's -8.5%Nordstrom -8.5%Target -4.5%Abercrombie and Fitch -11%JC Penney -5% |
| Stocks open lower, retailers lead declines as Macy's plunges 18% and Kohl's drops more than 9% https://t.co/QGbxSEeIuz pic.twitter.com/8mG440luey | Stocks open lower, retailers lead declines as Macy's plunges 18% and Kohl's drops more than 9% https://t.co/QGbxSEeIuz pic.twitter.com/8mG440luey |
| 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. | 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. | “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 | 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. | 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. | 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.” | 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.” |