London, July 12 (Inditop.com) Jaguar Land Rover, the British carmaker owned by India’s Tata Motors, is planning an extended shutdown of its British plants and a new round of layoffs as it tries to deal with the slump in the world car market, a media report said Sunday.
The preparation for the shutdown comes days after the company released its new flagship, the latest version of the Jaguar XJ, Sunday Times reported.
Management at Tata Motors hope the new car, which goes on sale in Britain early next year, will boost the dwindling sales.
In June, Tata Motors said mounting losses at Jaguar Land Rover had pushed it into its first annual loss of $522 million in seven years, and warned of drastic cost-cutting.
Jaguar Land Rover, which employs some 15,000 people in Britain, has so far avoided the lengthy shutdowns that some other carmakers have used to save money and run down stock. Japanese carmaker Honda had closed its plant at Swindon for three months.
The company has instead taken measures such as extending the Christmas break to two weeks, switching to a four-day week and laying off around 2,000 temporary employees.
Jaguar Land Rover is also trying to convince the government to provide a loan guarantee that would unlock a $550 million advance from the European Investment Bank (EIB). The EIB cannot dispense the cash until Britain agrees to repay it if Jaguar Land Rover goes under.
