Jaguar Land Rover will temporarily reduce production at its Halewood factory in England later this year, as a response to weakening demand caused by Brexit and tax increases on diesel-powered cars.
Britain’s biggest automaker saw its sales in the UK and Europe remaining flat in 2017 and it expects these conditions to continue, Reuters reports.
Despite this, Jaguar Land Rover enjoyed a 7 percent increase in production globally for 2017, building a total of 621,109 cars.
“Ongoing uncertainty surrounding Brexit is being felt by customers at home and in Europe,” the company said. “Concern around the future of petrol and diesel engines – and general global economic and political uncertainty – and it’s clear to see why the industry is seeing an impact on car sales.”
“Following a review of planned volumes, we are planning to make some temporary adjustments to the production schedule at Halewood in Q2.”
UK is planning to increase the amount of vehicle excise duty paid for a new diesel-powered car, starting from April, which will most likely hit Jaguar Land Rover as 90 percent of its sales locally are diesel models.
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