British car-maker Jaguar Land Rover said in a statement that it plans to move the entire production of Discovery SUV to Slovakia which used to be produced at the company’s Solihull plant in the UK. This move is expected to take place between end of 2018 and beginning of 2019.
This move led to some agency workers losing their jobs. There are 1,800 agency workers out of the total 10,000 workforce at the Solihull plant.
The company is looking to cut costs by this move since Discovery is one of the crucial models in their line-up. JLR wants to tackle the dwindling sales by offer a more value for money proposition to its customers in the UK.
JLR’s UK sales have been hit recently due to various external factors such as rising taxation, fall in adoption of diesel vehicles, regulatory issues and so on. Rising uncertainties due to BREXIT have also hit the carmaker.
Earlier this year JLR had said that it was committed to work in the UK. The carmaker also stated that it would take this opportunity to upgrade the technology at its Solihull factory to produce the next generation of flagship Land Rover models.
There have also been murmurs that JLR is also trying to free some space at the Solihull for the future production of electrified versions of its vehicles. The company plans to launch at least one electrified version of every model across its line-up by 2020.
The Slovakian plant being built in Nitra at a cost of £1 billion ($1.34 billion) will begin operations by the end of 2018.