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Government too late for Jaguar Landrover

Job losses announced for Jaguar Landrover

Job cuts at Jaguar Landrover will amount to 450 staff to be eliminated; 300 managers and 150 agency staff. Managers who keep their positions will not receive any bonuses this year and pay rises have been deferred until October.

Tata, which bought Jaguar Land Rover from Ford last year for $2.3 billion (£1.5 billion), has asked the UK Government to provide financial support, similar to the funding deal secured by rivals in the United States. The UK government has yet to provide aid to the British Car industry. Nissan announced last week that it would cut 1,200 employees in Sunderland, adding to the growing rate of redundancy in Britain, which surged again this week. The reduction represented more than a fifth of the workforce and is the first time that Nissan has cut permanent posts since it began production in Britain in 1986. The factory had been Europe's most productive car plant.

The car industry has told the government that it faces an emergency, and unions have called for a £13billion package of aid. More jobs will be at risk in vehicle manufacturing unless the government eases access to credit and finance, this will provide incentives to encourage the take-up of new vehicles, and maintain public procurement of new vehicles. Britain will come out of the recession considerably weaker if action is not taken to protect the automotive industry.

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