Jaguar Land Rover Lets 850 Go As Car Bosses Beg For Help

Some 850 agency workers at Jaguar Land Rover's West Midlands operations were told they would lose their jobs yesterday, just hours before car industry bosses pleaded for government help for the beleaguered sector.

The cuts take the luxury car maker's total job losses to 1,450 this year as it battles with the economic problems dragging down the auto industry across the world. They were announced just as the UK's major car manufacturers prepared to ask government ministers for support in the face of plunging sales caused by collapsing consumer confidence and restricted access to credit.

Jaguar Land Rover said engineering and IT staff were the worse affected by the latest cuts. The company, which employs 15,000 people in the UK, already has a 600-strong voluntary redundancy programme for permanent staff under way and also has a schedule of non-production days and weekly shutdowns across its UK facilities. "It is a difficult decision but it is part of us taking responsible and rapid actions for the future of the business," a spokesman said. "The car industry globally is probably the sector most severely affected by the current economic climate, and the premium end we are in is even more so." Some of Jaguar Land Rover's biggest markets are the worst affected by the fallout from the banking crisis. In the UK alone, combined sales of the two brands dropped by 4.7 per cent in the nine months to September and the company does not anticipate any improvement in market conditions in the immediate future. "The US and the UK are our two main markets and we have been adjusting production volumes in response to changing demand over the last few months," the spokesman said. Jaguar Land Rover was one of the manufacturers that met Lord Mandelson, the Business Secretary, yesterday to plead for a rescue package for the UK's £51bn-a-year industry. The meeting, brokered by the Society of Motor Manufacturers and Traders (SMMT) and attended by 17 senior representatives from the industry, was to discuss a package - worth several billions of pounds - to support the troubled sector. Measures proposed at the meeting include fast access to credit, support for a European Investment Bank (EIB) loan package and special liquidity arrangements for vehicle manufacture finance companies. But, although sources who took part in the discussions said there is no doubt that the Government "gets it", the official response was non-committal. "The meeting provided an opportunity for the Government to listen directly to how the industry has been affected by the current economic situation," the statement issued after the meeting said.

"The government will study the details of key issues they have identified." It is clear that the sector is suffering. There has been little but bad news this autumn. As well as Jaguar Land Rover's cuts, Honda is stopping production at its Swindon factory for two months next spring, BMW is closing four plants for a month over Christmas, and Nissan, Mini and Bentley have all announced reduced production schedules. What Paul Everitt, the SMMT chief executive, describes as "a set of unprecedented market conditions" has pushed car production down by 25 per cent in the last month alone. The problems are affecting manufacturers across the world. Japanese giants Toyota, Honda, Mazda and Nissan have all announced production cuts and staff lay-offs. German regional governments are considering assistance for Opel.

And in the US, the three titans - Ford, Chrysler and General Motors - have gone cap in hand to Congress and have until next week to come up with a recovery plan that merits the proposed $25bn (£16bn) rescue package. "This is one of the most challenging periods the sector has ever seen, and it is an industry that has already gone through severe restructuring in the 1980s and again in the 1990s," Mr Everitt said. Fiscal stimulus measures announced by the Government this week, including the VAT cut and the request that the EIB double its support for green vehicle technology to €4bn (£3.3bn) over the next two years, will help. But they may take several months to yield the much-needed cash. "We have welcomed the broad measures in the pre-Budget report but we need things that will have an effect more immediately," Mr Everitt said. "What we have agreed to do is work collaboratively with the Government looking at a range of solutions with a timetable that reflects the urgency of the situation." It is not only the car makers themselves who are at risk, but the wider industry including component makers, dealerships and outfits offering servicing and maintenance.

Without swift action, the industry faces more job cuts and production shutdowns, insiders warn. "There is a vicious chain reaction we can't get out of," one manufacturer participating in yesterday's talks said. "Customers can't raise the credit to buy the car, the dealers can't raise the credit to finance the supply, and that hits the liquidity of the manufacturers." More finance is needed not just to ease the strain of daily operations. Funding is also required to ensure that dev-elopment programmes remain on track, thereby safeguarding the future of the industry. "Product development is the key to the future of the industry," another manufacturer said. "We've got to think of the future of the industry."

Range Rover 2009: SE Disappears, Autobiography Arrives

Land Rover has modified its flagship model, the Range Rover. The SE finish version has disappeared from the 2009 series, which has gained a new trim level, the luxurious autobiography (available for €117,350). In Land Rover‘s product line, the term Autobiography has always stood for limitless equipment, exclusive colors and exquisite interior trims. Coinciding with the 2009 Range Rover‘s launch, the British brand decided to introduce the Autobiography to improve and enrich its series as much as possible. It is available with the 3.6 TdV8 272PS engine.

The new Range Rover does not lack a single detail, and even the door finishes, dashboard, seats, and center console are completely covered in leather. The floor mats are also bordered in leather. This finish provides authentic interior luxury that reaches unprecedented levels. As for the exterior, the Autobiography stands out for its special alloy wheels and new body paint colors.

New equipment in the Range Rover includes the Bluetooth Continental phone system and a shorter radio antenna, among other features. In comparison to the Vogue+ version, the Autobiography gains rear screens with DVD players, 20-inch Style 10 diamond turned alloy wheels, metallic moldings with an Autobiography inscription, Premium mats and the same front grille and side gills as the Supercharged versions. Optional equipment includes a particle filter (€830), Venture Cam, tinted windows, alarm, metallic paint, and other accessories.

Land Rover: The Most Ecological SUV

Land Rover has developed a new hybrid system that combines a diesel engine with an electric
motor. Thanks to this technology, the automaker‘s vehicles will be able to meet increasingly strict ecological regulations around the globe. The diesel-electric combination lowers emissions (and taxes on models) while maintaining magnificent performance qualities, even in extreme conditions.

The new LRX is a three-door model with a compact, lightweight design, although it remains loyal to Land Rover‘s characteristic brand image. It will reach the market next year with an electric motor that activates the rear train, in addition to a classic diesel engine. When necessary (in extreme driving situations), the electric motor can assist the front axle to improve performance results. Land Rover‘s new model will be innovative, frugal, clean and ecological.

Tata: Yes To Jaguar XF Derivative, No To SUV

Tata‘s product plans come into focus
What’s coming
January 2009: New V-8 engines
Mid-2009: Supercharged XF-R
2010: Redesigned XJ
After 2011: XF coupe, roadster or both; small lightweight sports car; unnamed luxury car
What’s not coming
SUV
Entry-luxury smaller car
Tata Motors Ltd. is solidifying its product strategy for Jaguar: A sports car is high on the list, but Tata is giving a firm "no" to an SUV. And dealers have little chance of getting an entry-luxury car to replace the XType.
Three new vehicles for ailing Jaguar "are under very serious consideration" by the new owner, says a dealer who has met with Tata CEO Ratan Tata. Ratan Tata plans to revive the brand and keep moving it upmarket--a reversal from the effort of prior owner Ford Motor Co. to build volume.
The most likely new vehicles include a derivative of the new XF sedan--a coupe, a roadster or both--and a lightweight sports car. At a meeting in New York with Jaguar executives, dealers were told that a third vehicle, a luxury car, is on the drawing board but were not given details.

"These are under very serious consideration," says Dick Fitzpatrick, owner of Crest Jaguar of Woodbridge in Woodbridge, Conn. "They will move fast."
The three vehicles don't include the replacement for the XJ, which was under development by Ford and will land at dealerships in about 14 months, says Fitzpatrick.
'LESS TEUTONIC'
Jaguar dealers have been asking for a lightweight sports car to compete with the Mercedes-Benz SLK,
Porsche Boxster and BMW Z4. Ken Gorin, owner of The Collection in Coral Gables, Fla., says the roadster also would compete with the Porsche 911 but says "it will be more emotional and less Teutonic."
"It's a little bit shorter than the current XK--an XK without a back seat," says Gorin, who also heads the Jaguar dealer council. The roadster would be positioned below the XK, which starts at about $79,000.
There have been reports that Ratan Tata has nixed a Jaguar SUV because it would compete with Land Rover, which Tata also owns. Tata would not confirm that.
Gorin says the SUV was more of a dealer request than "anything that was in Jaguar's mind."
An SUV wouldn't fit the vision for Jaguar that Ratan Tata has outlined for dealers--moving the brand upmarket as a true luxury player, says Gorin.
The redesigned XJ, due as a 2010 model, has been praised by dealers who have seen prototypes.
"It picks up from the XF design language and makes a statement for a flagship," says Gorin.
X-TYPE SUCCESSOR?
Some dealers are lobbying for a $40,000 car to compete with the BMW 3 series. Such a vehicle would replace Jaguar's X-Type, which was axed last December.
The X-Type was Jaguar's volume vehicle. But the sedan, based on the Ford Mondeo platform, failed miserably. Most dealers ran out of inventory this spring just as the XF arrived in showrooms.

Without the X-Type volume, Jaguar sales are slumping. Although Jaguar's estimated U.S. sales of 12,575 units this year are down only 3.6 percent from 2007, they are off sharply from earlier years. In 2003, for instance, Jaguar sold 46,180 units in the United States through October.
"Personally, I believe in the $40,000 segment for aspiring customers and clients," says Rob Elder, co-president of the Elder Automotive Group, which owns three Jaguar stores in Michigan and one in Florida.

"Of course, you want the moon. There are things coming very fast for Jaguar."

source:autoweek

It’s A Deal, JP Morgan Unit To Finance JLR In US

Mumbai-based Tata Motors, owners of luxury brands Jaguar and Land Rover (JLR), has signed an agreement with Chase, a part of the JPMorgan Chase & Co, to offer the full range of automotive financial services to its customers and dealers.

Under the arrangement, Chase will take up all Jaguar-Land Rover‘s consumer financing activities in the US from January 1, 2009. It will thus replace Tata's earlier arrangement with Ford, whose financial arm provided support after the takeover.

According to Tata Motors officials, about 35-36 per cent of JLR branded cars and sports utility vehicles are sold on credit aided by two financing firms, one each in the US and Europe.
Ford Motor Credit Co, the vehicle financing arm of the world's third largest car-maker Ford Motor Company, had agreed to continue financing JLR vehicles for one year starting April this year.

Similarly, Tata Motors had tied up with Fiat Group Automobiles Financial Services, the vehicle financing arm of Italy-based Fiat SpA, to offer financing solutions to JLR buyers in Europe.
Tata Motors' agreement comes at a time when the US market is facing a steep credit crisis forcing many buyers to postpone purchases. Top local lending institutions had stopped giving loans for automobile purchases due to the credit squeeze.
The current US slump in demand for cars and SUVs is the worst in the last 15 years, according to experts.

According to Tata Motors, during the three months period ending September, both the brands recorded a fall of almost 12 per cent in sales.

Source:Just-auto

Jaguar Land Rover Leads Calls For Steep Interest Rate Cut

Jaguar Land Rover yesterday led calls for a full one percentage point cut in interest rates this week.The West Midland luxury car maker made the call 24 hours after announcing that it was seeking to shed up to 400 more jobs at its three manufacturing plants, bringing the total number of lay-offs to 600.
Chief executive David Smith said a ―dramatic‖ cut in the Bank of England base rate was an "absolutely vital" economic stimulant.
We need a real shock to the system that a significant rate cut will provide,‖ he said.
Stimulating demand is crucial to avoid a deep and long recession, and interest rates are the place to start.
Mr Smith made the call after welcoming what he called the Government’s ―bold and imaginative actions to reignite the British economy last month.
A further deep cut in interest rates is the next step towards steering the economy away from recession.

He said yesterday: ―We have seen bold action from Government. Now is time for the Bank of England to follow suit. Only then will the benefits of Government action be felt in the real economy by improving cash flow and consumer confidence.
Birmingham Chamber of Commerce and Industry was less emphatic yesterday, arguing that even a full one point cut in rates would be unlikely to help small businesses or re-stimulate the property market. Chamber president Bridget Blow, a former non-executive director of the Bank of England, said the economic downturn would continue while the banks refused to lend to each other.

"There is overwhelming pressure on the Bank of England to announce at least a half a per cent cut in interest rates," she said.
But the extent to which a cut will affect businesses, particularly small businesses, remains to be seen.
"For many the real issue is access to borrowing with many banks likely to rein in lending despite the Government’s bail-out package and the associated conditions.
"Our members on the ground in the property sector remain unconvinced that banks will extend rates to
customers and potential customers.
"Many possess very little optimism that even a 0.5 per cut will help to stimulate new mortgages and property activity under current conditions, and they will be looking to government to see what other progress can be made to support local firms."
Black Country Chamber president Peter Mathews said a half-point cut this week ―should be the bare minimum".
He argued: "The Bank of England should have cut interest rates sooner in order to rein in the economic crisis.

"Inflation is not the serious threat to the economy at this present time, so a sizeable cut must be a priority to encourage economic activity and attempt to avoid a long period of recession."
Coventry and Warwickshire Chamber called on the MPC to make ―the biggest cut it can".
We want to see a huge fall in rates and I would strongly recommend that the Bank makes the biggest cut it possibly can when it meets this week,‖ chief executive Louise Bennett said.
The effects of the downturn on businesses across the UK are clear for all to see and companies in
Coventry and Warwickshire need all the help they can get.

I believe at least a half per cent cut in rates is needed and what is absolutely imperative is that this is then passed on to businesses in terms of a reduction in their borrowing rates when it comes to loans, overdrafts and investments.

Source :BIRMINGHAM POST Online, John Cranage,

At Least Tata Has Patience

The economic prospects for the West Midlands took a sudden and worrying turn for the worse yesterday when Jaguar Land Rover announced that it was looking to buy out the jobs of up to a further 400 employees.
As recently as last week, soundings that I took with the company indicated that the action management had taken by that stage would be enough to prevent production racing ahead of sales.These included 198 lay-offs - in line with an "efficiency" exercise that JLR insists it carries out every year. The Indian-owned company has also scrapped night shift working and has introduced further one-week shutdowns at its Castle Bromwich, Lode Lane and Hale wood plants.

Now we learn that the existing redundancy programme is being extended to take out between 300 and 400 more jobs.
It would now take a supreme optimist to bet on these latest redundancies being the last.
'It's not a matter of this downturn having a long way to run before it bottoms out: the signs are, it has only just begun. Carmaker severy where are battening down the hatches for what could be the worst storms in their history.
An entire industry employing millions of people and accounting for anything up to 10 per cent of GDP in some countries could be propped up on bricks before this economic storm blows itself out. More than one senior executive has talked about being in "uncharted waters" while Kevin Smith, chief
executive of global components manufacturer GKN, last week said: "I cannot remember it having been this
bad before.
"The sort of sales drops we have seen are huge".
Car sales in the UK, the US and mainland Europe have been going south for some time, but Jaguar LandRover has been insulated to a large extent by the growing popularity for its vehicles in new markets such as China, Russia and Brazil.
Not any more. Economic contagion, like a flu pandemic, knows no frontiers and for "fast growing" we can now read "not growing" if not "shrinking".
Here in the West Midlands we can at least be grateful that Jaguar Land Rover is in the hands of the patient and philosophical Tata conglomerate, whose Indian executives are happy to leave JLR chief executive David Smith and his team to run the business as they think fit.
Were the business still part of the ailing Ford group the prospect of plant closures would certainly be very real indeed.

Source : Birmingham Post