Jaguar cuts car production by 11%

Jaguar is to cut production of cars at its three UK manufacturing plants by 11% for the remainder of this year.

However, the T&G, the largest trade union at Jaguar, says that the company, which employs 8,000 people in the UK, has assured the union that there will be no job losses as a result of the production cuts announced on Friday.

Luxury carmaker Jaguar confirmed it is to cut production by 15,000 cars for the rest of 2004, across the company's three UK sites at Browns Lane in Coventry, Halewood in Merseyside, and Castle Bromwich in Birmingham.

Dave Osborne, T&G National Secretary for the car industry, said: "It is a tragedy that Jaguar are having to cut production at their most efficient plants in the Ford group.

"The US market accounts for nearly half of all UK Jaguar sales, so the exchange rate is having a big impact on the Jaguar business. The company have said there will be no job losses as a result and will move to a four-day week to facilitate the cuts they need.

"Clearly the position of Jaguar gives us cause for concern, particularly when the UK plants have performed so strongly."

The company have also indicated that they will be considering extending holiday periods in 2004.

Jaguar makes the XJ and XK models at its Browns Lane plant in Coventry, the X-type at Halewood on Merseyside, and the S-Type at Castle Bromwich in Birmingham.

Sales of Jaguar cars in the US have not been helped by the weak dollar and the strong pound.

Owned by car making giant Ford, the luxury UK marque has struggled to compete in a tough US market which has seen Jaguar's car sales dip by almost a quarter this year.

(SP)