Jaguar to cut production as buyers face liquidity crunch

19 September 2008

Jaguar will cut back production from its Castle Bromwich factory in the UKat the end of the month as potential buyers are withholding purchases due to the liquidity crunch, which has led to car finance virtually drying up.

Jaguar sales fell 41 per cent in August compared to the same period last year, and Land Rover lost 51 per cent, in comparison to Japanese carmaker Toyota's loss of 26 per cent in UK car sales.

This decline in Jaguar and Land Rover sales has led to the management decision to cut production by at least one shift at the Castle Bromwich factory, which builds the Jaguar X series and Land Rover Freelander, and employs more than 2,000 permanent staff.

Earlier in August, Land Rover had cut production and brought in a four-day week at its Solihull plant.

The company says it is slowing production so that it does not have to stockpile an expensive inventory of unsold vehicles.

Toyota, Land Rover and Bentley have also cut production in view of the slump in demand with August sales being the slowest in the UK since the last 40 years and the Society of Motor Manufacturers and Traders said UK car registrations in the current month had been dismissal.