Home > News > India > Jaguar Land Rover suspends production at UK plants

Mumbai: Tata Motors Ltd-owned Jaguar Land Rover Ltd today announced that the company would temporarily suspend production operations at its UK-based manufacturing facilities over next week as a preventive measure to guard employees from the fast spreading COVID-19 pandemic. The company said that its manufacturing plants in Brazil and India continue to operate.

“The company’s intention is to resume in the week of 20 April, subject to review of the rapidly-changing circumstances," the premium carmaker said in an official statement.

In China, JLR’s largest market globally, the company’s joint venture plant (with Chery Automobile Company Ltd), reopened in the week of February 24 as situation clawed back to normalcy. Due to the coronavirus crisis, which originated in China’s Hubei province, JLR along with local JV has reported a staggering 85% drop in its sales volume.

JLR has also temporarily shut its Slovakia factory, effective today.

Earlier this month in a statement on business impact of coronavirus, Tata Motors had said that the loss of sales in China is expected to reduce JLR’s full year EBIT (earnings before interest and taxes) margin by about 1%. “However, free cashflow in Q4FY2020 is still expected to be modestly positive and JLR has GBP 5.8 billion of total liquidity as of December 2019," Tata Motors had said on March 6.

The business impact of the aftermath of virus spread in China and on its new epicenter – Europe – is yet to be seen on the British premium carmaker.

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