• Sep 24, 2009
When the economy gets dinged, luxury vehicles gets massive dents. Jaguar and Land Rover haven't been the most profitable aut for a while, and parent company Tata is studying which of two plants it would shut to try and stem some of the losses; Solihull or Castle Bromwich.

It sounds drastic, but the pain of closing a plant and shedding underutilized capacity - about 40 percent of JLR's production overhead is going unused - could head off outright failure. Production has been pulled back already, while jobs have been cut and wages frozen, so word of the closing is just more bad news, but Jaguar Land Rover CEO David Smith is committed to taking "decisive actions" to see the storied marques through. The union, of course, is unhappy, and a meeting will be going forward between the company and GMB officials to determine what actions might be taken on both sides.

[Source: Automotive News - Sub. Req. | Image Source: Paul Ellis/AFP/Getty]


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  • 23 Comments
      • 5 Years Ago
      Its time to clean up UK auto makers.
      all garbage UK auto makers must clean up.
      • 5 Years Ago
      LR quality has been terrible, worst in the western world. That alone should determine which plant goes down.
      • 5 Years Ago
      Although one plant will be closed, no jobs are to be cut. In fact, they plan on increasing employment at Halewood.

      See here: http://www.independent.co.uk/news/business/news/jaguar-to-axe-midlands-plant-as-pressure-mounts-on-uk-car-industry-1792875.html
      • 5 Years Ago
      Betcha $100.00 you wouldn't last 5 minutes saying old and blazé to my wife.
      • 5 Years Ago
      Personally I think Jag is making some of the best cars on the market right now. The XF is a stunning car, and I can only imagine the power behind the XFR. The XK is a beautiful coupé and convertible, and the new XJ looks to be very impressive. I don't know how someone shopping for a $60K luxury car could buy an Audi or a Bimmer when beautiful cars like the XF are in the same price range.
      • 5 Years Ago
      Gotta do what you gotta do. I just hope Jaguar survives. My wife will want a replacement for her 1995 XJS convertible eventually.
      • 5 Years Ago
      Thats sad to see, seems like India has taken over the English now.
        • 5 Years Ago
        "It's is bad luck, Jags, Land Rovers, and MG's had there own style being English brands. Now they will be just cookie cutter cars and thats a sad thing."


        Jaguars and Lad Rovers continue to be designed in-house. Ownership of the company's shares has nothing to do with the design of a product. Profitability does. LR and Jaguar have failed to be particularly profitable for a very, very long time.

        Oh, and you need to understand the difference between "there" and "their".

        • 5 Years Ago
        Well, seems like the English are having really bad luck with there car companies, MG got sold to a Chinese company, and TVR last I heard was a Russian car company. Jag and Land Rover started bring out interesting cars but still got sold.
        Then again, the American car companies are getting a little taste with Hummer getting bought by the Chinese.
        • 5 Years Ago
        "Well, seems like the English are having really bad luck with there car companies, MG got sold to a Chinese company, and TVR last I heard was a Russian car company. Jag and Land Rover started bring out interesting cars but still got sold.
        Then again, the American car companies are getting a little taste with Hummer getting bought by the Chinese."


        Business is business, and British car companies by and large are relatively small to compete independently in this day and age. TVR was bought by a Russian individual, not a Russian company. MG wasn't bought by a Chinese company - MG Rover itself was liquidated. Nanjing acquired the rights simply to use the MG name.

        Foreign ownership in a given entity can hardly be described as "bad luck". As long as appropriate investment in a company is made, sensible business decisions are produced, productivity is optimised, and there's an adequate return on investment, then it doesn't matter what domicile any owner or parent company has.
        • 5 Years Ago
        No kidding, taking turns owning each other.
        • 5 Years Ago
        It's is bad luck, Jags, Land Rovers, and MG's had there own style being English brands. Now they will be just cookie cutter cars and thats a sad thing.
        • 5 Years Ago
        An ironic twist of fate given the history between the two.
      • 5 Years Ago
      I think lot of people did felt sad after british marques got sold back to back especially some name which are close to hearts....atleast I wud've
      and I wasnt really relating Tata buyouts and factory closing down
      • 5 Years Ago
      I can understand how brits must be feeling now after being on the top once and now to nothing but am I right in saying that the only reason british rover cudnt survive is due to their internal issues.

      I mean take jag for example why did they take so long to revive design philosophies
      and ford was in good condition back then why didnt they made jaguars as jaguars
      you cant really expect a jag which looks dates from outside and is basically a mondeo under skin to take on the german rivals.

      and about Indian ownership even being an Indian im not quite sure well tata is equipped to handle tech side of buisiness but honestly JLR isnt much lagging in tech they need finance and some good corporate decisions and that I think the tatas can take care of perfectly given their reputation
      moreover I wud suggest take this is as a tata ownership rather than indian ownership cuz they are miles better and ethical than some thiefs here I wont name (hint : they are BIG in hollywood now)

      Go Jag >>> I wanna see you chasing down 007's astons again !!
        • 5 Years Ago
        " can understand how brits must be feeling now after being on the top once and now to nothing but am I right in saying that the only reason british rover cudnt survive is due to their internal issues.

        I mean take jag for example why did they take so long to revive design philosophies
        and ford was in good condition back then why didnt they made jaguars as jaguars
        you cant really expect a jag which looks dates from outside and is basically a mondeo under skin to take on the german rivals."


        Firstly, a car company being owned by another with a foreign domiciliary is nothing to lose pride over. The fact that a factory is closing is due to JLR's standing in the market - two small companies competing in a vastly shrunken marketplace as a result of a severe global recession. Even before the recession, the two were struggling to remain profitable, which is difficult in a wealthy western country with high labour costs. Had JLR been independent, one of these factories would have closed long ago given the recessive economic climate.

        Secondly, the X-Type was not merely a Mondeo under the skin. It used a heavily revised version of the mk2 Mondeo's platform - and that was no bad thing, given just how good the Mondeo's chassis dynamics were. The main problems were an attractive, but unimaginative design and few engine/trim options to properly compete against the Germans. In addition, it sorely needed to have an RWD option. It sold comparatively well in Europe given its limited engine options, but Jaguar's products also need to sell well in North America to be a success.
      • 5 Years Ago
      Bodacious.
      • 5 Years Ago
      I doubt that Tata is surprised as JLR's losses right now.

      Think about it:

      1) The (albeit sinking) strength of the British Pound makes labor costs way too high, and it causes JLR to either cut their prices to below profitability in order to sell them in NA, or to price their cars above what the market will bear. This was true when Tata bought them from Ford, and it's still true now.

      2) The company was in the middle of HUGE cash outlays to either tool for - or amortize the tooling of - the new XF, XJ, and new engines. And Jag's still got new models in the pipeline, along with Land Rover, and a still-planned (at last count) relaunch of the Daimler marque to compete with Bentley, Rolls, and Maybach. Tata knew this going in, as well.

      The only thing Tata couldn't have known was how badly the market would crater around the world - and how quickly.

      So in my opinion, if Tata did their due dilligence before purchasing JLR - and I believe they did - there's little danger of the whole thing collapsing. Talking about closing one plant is only prudent at the moment with production volumes so low.
      • 5 Years Ago
      I will take you up on that Azael. I would like it in five $20s please :)
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