Jaguar Land Rover will cut production of some vehicles amid uncertainty over Brexit and changes to taxes on diesel cars.
The company will temporarily scale back the output of the Discovery Sport and Range Rover Evoque models later this year.
Recently, JLR said its global sales hit a record in 2017, but that the United Kingdom market was “tough”.
Vehicle makers have blamed Brexit confusion and a hike in diesel taxation for a general fall in UK car sales.
The two Land Rover models are made at the company’s Halewood plant on Merseyside. The output will be reduced in the second quarter of 2018.
JLR said the car industry continued to face a “range of challenges” that were hitting consumer confidence.
“Ongoing uncertainty surrounding Brexit is being felt by customers at home with demand for new cars down 5.7 per cent in 2017 and in Europe where collectively, we sell approximately 45 per cent of total UK production.
“Add to this, concern about the future of petrol and diesel engines, and general global economic and political uncertainty and it’s clear to see why the industry is seeing an impact on car sales.”
The Range Rover Evoque has been made at Halewood since 2011 and Discovery Sport since 2014.
“Volumes have remained at peak levels since that time, allowing us to maintain what was initially a three-shift pattern. These changes to operating patterns are temporary and sensible business practice,” JLR added.
Figures from the Society of Motor Manufacturers and Traders in November showed the number of cars built in the UK fell by 4.6 per cent, driven lower by a fall in domestic demand, while exports
grew.
The Chief Executive Officer, SMMT, Mr. Mike Hawes, said, “Brexit uncertainty, coupled with confusion over diesel taxation and air quality plans, continues to impact domestic demand for new cars and, with it, production output.”
