Jaguar takes advance orders for new XJ
“We are also transferring 300 people from Solihull to Castle Bromwich to support XJ production,” Mr Hume said.
While Castle Bromwich and Lode Lane gear up to produce new models, there is uncertainty about the future of Jaguar Land Rover’s third factory, at Halewood on Merseyside, which currently produces the Jaguar X Type and the Freelander 2.
The site is widely believed to be at risk following comments from Ravi Kant, vice-president of JLR’s Indian owner, Tata Motors, in the wake of figures showing that JLR lost more than £280 million in the last ten months of the financial year to March 2009.
Tata has already axed nearly 2,000 jobs across the three JLR plants, cut production volumes, temporarily shut plants and imposed a pay freeze in response to the global slump in sales.
Mr Kant, who is closely involved with JLR’s operations, warned in June that further job cuts and “more such” plant closures could occur unless demand for its vehicles improves.
Tata says Mr Kant was referring to temporary shutdowns, but his remarks have been interpreted as suggesting that Halewood – which was converted to Jaguar production in 2000 after decades of making the high volume Ford Escort – could close. Tata yesterday said it would not comment on “speculation”, but the Birmingham Post understands that no decision on either a temporary or permanent shutdown will be made until the autumn at the earliest.
The belief within the automotive industry is that Tata is content to let rumours circulate in an attempt to bring its long-running negotiations to win aid from the UK Government in the form of commercial loans or loan guarantees to a successful conclusion.
Halewood’s case could be weakened by the fact that the X Type – an unsuccessful attempt by Ford to broaden Jaguar’s appeal in that volume car market – will almost certainly not be replaced, leaving the factory with just one model, the Freelander 2.
If Tata does decide the shut the site it would have to renegotiate a £27 million grant from the Government toward the estimated £300 million cost of putting the planned Range Rover-badged LRX low carbon concept car into production. A condition of the loan is that the car would be produced at Halewood.
