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Land Rover imposes four day week to cut production

Friday, August 29th 2008 - 21:00 UTC
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Land Rover has announced plans to cut production at its Solihull plant in England, including the introduction of a four-day week on some lines. Discoveries and Land Rover Sport models will no longer be manufactured on Fridays

The motor giant insisted that it has no plans to make any of its 5.000 work force on the West Midlands site redundant. The firm, which, along with Jaguar was taken over by the Indian group Tata in June, said it was taking essential action in response to tough economic conditions. Land Rover said the financial slowdown had reinforced the need to match demand with supply, adding that it was not prepared to stockpile vehicles. Tata's economy drive includes no production of discoveries and Land Rover Sport models on Fridays, a change effective from early next month until the end of the year. There will also be a "slight slowing" of the production line, the company said. In addition, the nightshift manufacturing Range Rovers will be suspended from early October for the rest of the year. The company would not say how many vehicles will be affected by the changes, but a spokesman said it only added up to a "very small" percentage of its annual production. He added that sales were strong in China, Russia, Brazil, Australia, the Middle East and North Africa, but conditions have become "very challenging" in the UK and United States. Tata completed the acquisition of Land Rover and Jaguar from Ford Motor Company for 2.3 billion US dollars last. June. In related news from India, Tata Motors had to suspend the production of its Nano model, considered the cheapest in the world with a cont of 2.300 US dollars. Apparently peasants and political parties held a rally to protest the expropriation of land near Calcutta to build the factory. The 3.600 workers of the new plant had to be escorted by police because of the violent protests. Tata has invested over 350 million US dollars in the new plant but given the growing resistance from locals is considering moving to another city.

Categories: Economy, International.

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