Jaguar Land Rover will cut production at its Castle Bromwich and Solihull plants and not renew the contracts of around 1,000 temporary workers due to "continuing headwinds impacting the vehicle industry", it said today.
The two factories in question are the central English Solihull and Castle Bromwich plants, and this will affect around 1,000 agency workers. The factory employs 10,000 workers, including 2,000 contract staff.
Around 40,000 people are employed by JLR in the United Kingdom, including 10,000 at its Solihull plant.
In the United Kingdom, sales fell by 12.8 per cent, while Europe suffered a 5.3 per cent decline.
The job cuts are expected largely at Solihull in the West Midlands region of England, with mostly agency staff not having their contracts renewed. Consumer confidence in the United Kingdom had also been hit by uncertainty over Brexit.
"This is desperately bad news for all those affected and a worrying sign of how the deep uncertainty around Brexit is continuing to damage Britain's economic performance", said Peter Kyle MP, a member of the pro-Remain, Open Britain campaign, condemning the government's decision to rule out single market and customs union membership.
"We are however continuing to recruit large numbers of highly skilled engineers, graduates and apprentices as we over-proportionally invest in new products and technologies, it added".
Earlier this year, it said it would cut production amid uncertainty over Brexit and changes to taxes on diesel cars.
Following a review of planned volumes, we are planning to make some temporary adjustments to the production schedule at Halewood in Q2.
JLR said it was fully committed to its United Kingdom factories after investing £4bn in them since 2010.
Full details of the vehicle manufacturer's plans will be announced on Monday, according to insiders.
The brand, which is the UK's biggest auto maker, will trim production following the sharp fall in diesel demand that contributed to a drop in sales for the British marques previous year.
"It's unfortunate that in the United Kingdom demand is not there anymore, and the United Kingdom is our home market". Scotland is aiming for 2032 as its cutoff date. The ruling left millions of drivers questioning how they would travel to work and school if there was a ban and wondering what to do with vehicles likely to plunge in value.