Jaguar signals end of car making in Coventry

Ford-owned car manufacturer Jaguar is to end car production at its Browns Lane factory in Coventry, although due to the brand’s “historic ties” with the city Jaguar’s headquarters will remain at the site.

425 jobs will be transferred for those employees that wish to relocate to the nearby Castle Bromwich plant for the final assembly of the XJ saloon and new X150 sports car, which will be produced in early 2006.

The separation terms for the remaining 400 positions are to be Jaguar's “most generous ever for a voluntary redundancy programme”, according to a company statement.

Jaguar also say they will work closely with Trades Unions, government and local development agencies to oversee implementation of an Employee Support Programme.

Joe Greenwell, Chairman and CEO Jaguar and Land Rover, said: "Our new business plan was developed following a rigorous review by the Jaguar management team. We examined a number of alternatives and I would not be presenting this plan today had I not been absolutely convinced that it is the right plan and completely necessary.

"The plan is wide-ranging, extends over a number of years and touches most aspects of the business. It also includes some severe measures that we do not take lightly. But that is a reflection of the highly competitive and global nature of the business we are in.

"The fact is despite significant sales growth and excellent levels of quality in recent years, we have not been able to keep pace with significantly larger competitors. We have too much capacity and this is our underlying structural problem. Our bottom line has further deteriorated this year with the weakness of the dollar, unprecedented incentives in the premium market and the shift from premium cars to SUVs. We had no choice but to take action and I firmly believe that all the elements of this plan are essential if we are to stem the losses."

Mr Greenwell also asserted that, despite the difficult business circumstances, it is Jaguar’s intention to do everything possible to achieve this restructuring on a voluntary basis. "It is with deep regret that we have had to announce some actions today which affect people's jobs. However I can give everyone my personal assurance that we will do everything we can to support those affected."

Mark Fields, Ford Motor Company, Executive Vice President – Premier Automotive Group and Ford of Europe, said: “Decisive action was needed to get Jaguar back on track and to ensure a viable future. Despite the actions taken by the company’s management over the past few years and despite the fact Jaguar is again the highest rated European brand on product quality, Jaguar is back in a serious loss-making position. There are a number of external factors which have exacerbated the situation but we have faced and tackled the fundamental reality, that Jaguar simply cannot support three assembly plants with annual sales of 125,000 cars."

Mr Fields, Ford's most senior executive based in Europe added: "Manufacturing capacity although a significant factor is only part of the issue and the solution. What we have developed is a series of actions to strengthen Jaguar. These also include a leaner organisation structure on the cost side of the equation and on the revenue and brand side, a package of product and marketplace actions which will drive the company forward in a way which is more appropriate for the brand and will drive a better bottom line."

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