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2 Reasons Jaguar Land Rover Reduces Its Car Production

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23 January 2018 10:52 WIB

TEMPO.CO, Jakarta - Jaguar Land Rover, a British car manufacturer, will cut production at the Halewood factory in northern England later this year because of the weak demand of Brexit and the tax increase of diesel car.

Jaguar Land Rover's sales in the UK and Europe stagnated during 2017, and the difficult situation is expected to continue according to the company's sales director earlier this month.

"The ongoing uncertainty which surrounds Brexit is felt by customers both domestically and in Europe," stated the company and quoted by Reuters on Monday, January 22.

"Concerns over the future of gasoline and diesel engines, the uncertainty of global economic and politic in general and it is clear to see why the industry witnesses its impact on car sales."

"After reviewing the planned volume, we plan to make some temporary adjustments towards the production schedule at Halewood in the second quarter," Jaguar explained.

The UK will increase the excise tax on diesel vehicles that are purchased from April, which is likely to have an impact on Jaguar Land Rover, the contributor to 90 percent of diesel-vehicle sales in the country.

The new car registrations in the UK last year from all sectors experienced the biggest decline since 2009 and industry agencies said that it was caused by the enforcement of diesel-vehicle tax excise and the weakening consumers’ trust ahead of Britain's vote to leave the European Union (Brexit).

ANTARA



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