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Jaguar Land Rover To Pause Production At U.K. Engine Plant

JLR has said that the affected staff will continue to receive full pay.

Range Rover Evoque Sport sport utility vehicles (SUV) and Land Rover Discovery Sport sport utility vehicles (SUV) sit on a transporter outside Jaguar Land Rover Plc’s assembly plant, a unit of Tata Motors Ltd., in Halewood, U.K. (Photographer: Matthew Lloyd/Bloomberg)  
Range Rover Evoque Sport sport utility vehicles (SUV) and Land Rover Discovery Sport sport utility vehicles (SUV) sit on a transporter outside Jaguar Land Rover Plc’s assembly plant, a unit of Tata Motors Ltd., in Halewood, U.K. (Photographer: Matthew Lloyd/Bloomberg)  

Tata Motors Ltd.'s luxury carmaking arm Jaguar Land Rover will take a “temporary pause” at its engine factory in the U.K. till Christmas for adjusting output, Bloomberg reported citing a statement by the automaker.

The two-week production freeze is set to affect 500 full-time employees at the engine manufacturing centre in Wolverhampton, the company said. The affected staff will continue to receive full pay during the freeze.

The move reflects fluctuating global demand due to Brexit uncertainties, a decline in diesel car demand and lower sales in China, the company said. “The external environment remains challenging and the company is taking decisive actions to achieve the necessary operational efficiencies to safeguard long-term success.”

Earlier in October, JLR’s Solihull assembly plant had shutdown for two weeks for “operational efficiencies”. The company now said that an extra 200 workers will leave Solihull site as a result of previously announced plan to shift production of Land Rover Discovery to Slovakia early in 2019.