Business experts have expressed their concern over news Jaguar Land Rover is to cut jobs at its Merseyside plant, claiming the move "raises larger questions" over the future scale of assembly at all of the car giant's 海角视频 plants.

The firm today announced a major change to its Halewood factory shift pattern, meaning up to 500 staff are to be made redundant.

The news has garnered a significant amount of reaction, including concerns from the region's political leaders and business experts.

Professor Karel Williams, automotive expert at Manchester Business School, said he now has fears over the firm's commitment to the 海角视频 due to competition from countries within the European Union.

He told BusinessLive: "The loss of a shift scales back Halewood's employment and output.

"The redundancies will hurt in Liverpool at the same time as they raise larger questions about the future scale of assembly in all of JLR's 海角视频 plants.

"It is getting much harder to sell JLR 4X4s against intensifying competition and the company will need to load and expand its all new factory in Slovakia which offers lower wages and the Euro currency inside the European Union."

JLR said on Wednesday that Brexit was not a factor in the firm's decision, but Prof Williams added: "JLR's R&D will stay in the 海角视频 but it is increasingly attractive to assemble their vehicles inside the markets where they are sold."

JLR said on Wednesday the move from a 'three-shift' to 'two-shift' pattern will mean around 10% of its Halewood workforce - which includes 4,000 employed directly at the Merseyside factory, and 500 agency staff - impacted.

The firm has said the change will bring "significant operating efficiencies", and that it is offering an "enhanced voluntary redundancy programme" to its workers.

They will be fully implemented in spring.

The Jaguar Land Rover plant in Halewood

David Bailey, professor of business economics at Birmingham Business School, said: 鈥淚t鈥檚 not clear what level of redundancies there will be at Halewood and whether or not this is part of the 4,500 job cuts announced last year or on top of that. Either way, it鈥檚 bad news.

鈥淛LR sales last year were down 6% last year and the firm announced a 拢2.5bn programme to improve the firm鈥檚 鈥榖ottom line鈥, involving big job cuts.

鈥淭he firm as a whole has faced something of a perfect storm in terms of declining sales in China (as the world鈥檚 largest car market contracted after 20 years of breakneck growth), a massive shift away from diesels across Europe in the wake of the VW Dieselgate scandal, and Brexit uncertainty slowing the 海角视频 market and investment."

He said the cuts at Halewood were "especially disappointing" as the new Evoque was an "attractive model in mainly hybrid form" - and the Discovery Sport "has just been facelifted and should see its sales pick up".

He added: "The fact that there are job cuts around two attractive models shows the scale of challenge that the firm faces.

鈥淭he new Evoque went on sale in China late last year and should sell well but it will be made in China so this won鈥檛 benefit Halewood.

鈥淕oing forward the industry 鈥 including JLR - wants to see a deal with the EU after Brexit that avoids tariff and non-tariff barriers."

Back in September, fears were raised over potential job losses at the plant after bosses proposed big changes to shift patterns.

An email sent to staff at the Halewood plant and seen by BusinessLive told workers many of them would be moving to a '2+ shift pattern' from a '3 shift pattern' as of November, with the pay offer subject to a workforce ballot.

Maria Eagle, MP for Garston and Halewood, said: "This shocking news is a real blow to our manufacturing economy in Garston and Halewood. Apart from the jobs to go at JLR - 10% of the workforce - there will be knock on effects in the supply chain.

鈥淲e are told that this is nothing to do with Brexit but I am worried that the ongoing uncertainty about our future trading relationship with the EU will mean there are more job losses to come in the north west auto industry.

鈥淚 will be seeking an urgent meeting with ministers to get assurances about what they plan to do to stop worse things happening for jobs at JLR."

Jaguar Land Rover said Brexit was among the factors hitting consumer confidence
Jaguar Land Rover

A JLR spokeswoman said on Wednesday: 鈥淭hrough its ongoing transformation programme, Jaguar Land Rover is taking action to optimise performance, enable sustainable growth and safeguard the long-term success of our business. Central to the Halewood manufacturing strategy, we are moving from a three shift to two-plus shift pattern from April 2020.

"This will deliver significant operating efficiencies at the plant, while enabling us to meet the growing customer demand for our new Range Rover Evoque and Land Rover Discovery Sport.

鈥淭his change in shift pattern affects around 10% of Halewood鈥檚 workforce. Jaguar Land Rover Halewood employees have the opportunity to leave through an enhanced voluntary redundancy programme.鈥

Unite said the redundancies are a result of the "ongoing macro-economic uncertainty" with slower than forecast rate of growth of the Range Rover Evoque and Land Rover Discovery Sport models that are produced at Halewood.

The job losses, the union said, are a result of moving from a three shift system to a two plus shift system "that will deliver flexibility efficiencies that longer term should benefit both employees and the company", which is set to come into effect from this April.

Jaguar Land Rover Factory in Halewood Liverpool.

The job losses comprise a mixture of permanent employees and agency staff and account for over 10% of the plant鈥檚 workforce.

Responding to the news, Unite national officer Des Quinn said: 鈥淭his is a further blow to the 海角视频 car industry in general and to our members at Halewood in particular.

鈥淯nite will be ensuring that the commitment to limit job losses to voluntary redundancies is fully honoured.



鈥淭he challenges being faced at JLR are also being experienced by other 海角视频 car factories.

鈥淭he 海角视频鈥檚 car industry has plummeted from being the jewel in the crown of the 海角视频鈥檚 manufacturing sector in a few short years, directly as a result of government inaction.

鈥淯ntil the government ensures that there is long-term frictionless trade and no tariffs with the European Union along with meaningful investment in the infrastructure to ensure the success of electric vehicles, the 海角视频鈥檚 car industry will continue to experience severe challenges.鈥