While the brand is gearing up to launch an array of new offerings that includes the F-Type SVR and the new Range Rover Sport, the company might be slashing 1,000 jobs as well as drastically reduced production at two of its plants.
Britain's biggest carmaker said it had been informing employees about the decision on Monday - after reports had emerged last week.
The company said that retail sales were 83,732 for March and 172,709 for the fourth quarter, down 7.8% and 3.8%, respectively, primarily due to lower United Kingdom sales, and to a lesser extent reduced sales in Europe. Additionally, even the uncertainty of Brexit is being seen as one of the reasons.
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The majority of the vehicles JLR makes are driven by diesel engines.
Unhappily for JLR, 90 per cent of its vehicles are powered by diesel engines and there are critical industry voices that say they have been slower than their rivals to embrace hybrids and electric, the reported.
Commenting on JLR's decision, Professor of industry, David Bailey, from Aston University, said: "With the big turn against diesel engines, Jaguar Land Rover is particularly exposed as more than 90 per cent of its United Kingdom sales are diesels".
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In Europe, diesel sales decreased 7.9% in 2017 and showed a marked dive of 20.5% in December, according to figures from analyst Jato Dynamics, indicating that the downward trend was gathering pace.
The job-cut comes as a result of the sharp drop in Jaguar Land Rover sales in the past year. JLR exports 80% of the vehicles it makes across its three plants in the United Kingdom, which also includes Castle Bromwich and Halewood.
JLR said in a statement on Friday that it was making adjustments to production schedules and the levels of agency staff "in light of the continuing headwinds impacting the auto industry". We are however continuing to recruit large numbers of highly skilled engineers, graduates and apprentices as we over-proportionally invest in new products and technologies.
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