Why JLR is running off the road after £90 million losses
The West Midlands' car-making titan has racked up losses of £90 million after seeing sales slide in recent months.
And now a business expert has pointed to problems in China as the 'most pressing concern' for Jaguar Land Rover.
Christian Stadler is Professor of Strategic Management at Warwick Business School and an expert on the car manufacturing industry.
He said: "This is more bad news for Jaguar Land Rover, having already laid off 1,000 workers in the Midlands this year, with its flagship Solihull factory in the middle of a two week shutdown, and its Castle Bromwich plant currently operating a three day week.
Behind the scenes: Express & Star goes inside the Jaguar Land Rover engine factory
"The most pressing concern is the drop in sales in China.
"That is their biggest market, but the Chinese economy is growing at its slowest rate for a decade and the country is locked in trade war with the US.
"Car buyers in China are reluctant to make big investments because they don't know what the future holds."
Around 1,800 people work at Jaguar Land Rover's Engine Manufacturing Centre, or EMC, on the i54 site to the north of Wolverhampton, on the border with South Staffordshire.
The car maker has so far invested a £1 billion in the site, which was confirmed as the UK's busiest and biggest engine factory earlier this year.
Mr Stadler believes that Brexit has thrown uncertainty over the country's car manufacturing sector.
"Brexit could hit sales even harder, as the car manufacturing industry in the UK is so closely integrated with that on the continent. The supply chain typically crosses The Channel six times before a car is finished.
"A 'no deal' Brexit and tighter border controls would cause massive disruption and could force JLR to put up their prices due to increased tariffs. If that happens, I do see sales suffering. The company has already announced it is cutting spending by £500 million this year and next and more cuts could follow.
"But there is some good news among the doom and gloom, as China is reportedly considering cutting vehicle sales tax to boost demand. That would be a big help for luxury car manufacturers like JLR.
"Long term the company needs to invest in electric vehicles. JLR has been slow to embrace electric cars and could suffer if the Government brings forward the ban on new diesel and petrol cars.
"The move to electric is a problem for many of the big manufacturers, as it will see new competitors fighting for market share. There are many Chinese players backed by the Chinese Government, while US tech firms are looking at their own mobility solutions. If JLR is too slow to respond it faces a bumpy road ahead."
