Jaguar Land Rover is Also Afraid of the Recession

Apparently Jaguar Land Rover CEO David Smith had an interesting discussion with British Prime Minister Gordon Brown last week, and the information related to the visit has just emerged. The boss of the now Indian-owned premium car brands has called for more action from the UK government in order to boost sluggish car sales by restoring customer confidence.

"The bold and concerted actions announced by our government this week to unblock the banking system and the vital first cut in interest rates from the Bank of England are welcome, but we still need to take action to stimulate the real economy", Smith said.

He also said that the current crisis is having a serious influence on the automotive and supplier industries, and that it is very possible it might lead to lots of job losses. All this lobbying doesn't quite come as a surprise since Jaguar Land Rover's sales are down 19.4 percent to 72,150 units in the first two trimesters of 2008.

Smith didn't forget to mention that the company under his helm isn't the only one in this potentially treacherous situation, and that virtually all car manufacturers are taking many short and mid-term actions in order to maintain profitability.

Besides exponentially cutting production at its three plants in the UK, Jaguar Land Rover also had  production-halt days throughout the summer at its Halewood, Castle Bromwich and Solihull production sites.

"The economic environment is getting more challenging by the day and I do believe that, unless we introduce further measures to reignite the UK economy, there is significant risk". David Smith also said. Jaguar Land Rover is only one of many and we are expecting more and more car manufacturers to appeal to their home-governments for certain favors in order to help them stay above the floating line.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
About the author: Alex Oagana
Alex Oagana profile photo

Alex handled his first real steering wheel at the age of five (on a field) and started practicing "Scandinavian Flicks" at 14 (on non-public gravel roads). Following his time at the University of Journalism, he landed his first real job at the local franchise of Top Gear magazine a few years before Mircea (Panait). Not long after, Alex entered the New Media realm with the project.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories