JAGUAR Land Rover is to cut up to 1,000 jobs in Solihull and transfer hundreds of permanent employees.
The luxury car manufacturer could reduce agency staff due to the fall in demand for diesel models and the increasing pressures of Brexit.
The company’s Lode Lane plant – which employs over 10,000 people – is where job losses will occur.
Around 1,000 temporary agency staff will not have their contracts renewed in an effort to cut back on production.
More than 350 permanent workers are also being transferred to Lode Lane from its Castle Bromwich facility.
In January, the company cut back production at its Castle Bromwich plant because of ‘challenges facing the car industry’.
And there have been a series of planned shut downs since then.
An update from JLR today reads: “As is standard business practice, Jaguar Land Rover regularly reviews its production schedules to ensure market demand is balanced globally.
“In light of the continuing headwinds impacting the car industry, we are making some adjustments to our production schedules and the level of agency staff.
“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, including the latest plug-in hybrid options for the Range Rover and Range Rover Sport that are now being delivered to customers from Solihull.
“We also remain committed to our UK plants in which we have invested more than £4billion since 2010 to future proof manufacturing technologies to deliver new models.”
Responding to the announcement, former Solihull MP and Liberal Democrat member of the House of Lords, Baroness Lorely Burt said: “The throttling back is in response to Brexit and falling demand for diesel models is having an impact on the economy.
“You can literally see the Midlands Engine of our economy spluttering because of Brexit.
“But that spluttering means jobs, investment and growth. The motor industry is the jewel in the crown of UK manufacturing.
“Before the Brexit vote, JLR was a superb success story and jobs and the supply chain companies were growing strongly.
“But thanks to Brexit, and issues over Diesel engines, these challenges have caused serious challenges for JLR. They will over time grow again but businesses are facing a Brexit headwind.”
On Friday, Julian Knight MP for Solihull said: “The news that has come to us today, from Jaguar Land Rover is disturbing, and I am in regular contact with JLR on this issue.
“More generally, I think it is a mistake for the green lobby to propose measures against diesel vehicles which are often less polluting than other vehicles, and where there are relatively easy fixes in place in order to reduce emissions.
“The demonisation of diesel is now having very real consequences for the UK car industry, which is key to Britain’s growth.”