Tata Motors to Shut Down Flagship Factory in West Midlands, UK

Friday 25 September 2009, 00:00 AM by Satish Kalepu

One of the two major JLR West Midlands factories will be shut down by Tata Motors as the company chalks out a major turnaround plan to revive company’s profit figures. However, the step will not be an immediate one and whole process will be completed by 2014. It is one of the major product expansion plans and cost-cutting measures from Tata Motors for JLR.

“The new business plan is made in the context of the business environment the auto industry faces,” said a Tata Motors spokesperson. “The new manufacturing plan does not envisage any compulsory redundancy. In fact, 800 new jobs will be created at Halewood for the production of a new Range Rover model,” he added. Land Rover has announced that its Range Rover LRX will go into production soon and will be on sale in the UK by 2011.

JLR suffered 52 percent drop in sales in the June quarter which resulted in net loss of Rs 319 crores. The new plan will help the company to return to profit in next two years. David Smith, the JLR chief executive, said the plan "recognises the impact" of the downturn and the "opportunities that lie ahead". Tata Motors acquired JLR last year in March and ever since then the economic conditions around the globe had gone into a whirlwind hitting the auto industry as well.