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Jaguar, Land Rover plan job cuts

01:00 AM EST on Saturday, November 29, 2008

By Steve Rothwell

Bloomberg News

Jaguar and Land Rover, the U.K. automakers owned by Indias Tata Motor Ltd., plan to cut jobs as the global recession undermines demand for new cars.

The automakers won’t renew the contracts of temporary computer and engineering workers after Christmas, spokesman Mark Foster said in an interview. The employees are based at four sites in central England, including Land Rover’s factory in Solihull and Jaguars plant at Castle Bromwich.

Tata bought the two units from Ford Motor Co. for about $2.4 billion in June. Ford itself said yesterday that it would dismiss temporary workers and cancel shifts as its cuts European manufacturing output by 10 percent next year. The U.K. Society of Motor Manufacturers & Traders cut its 2008 sales forecast by 4.9 percent to 2.15 million vehicles on Nov. 6 after sales fell for a sixth consecutive month in October.

Global car market conditions remain severe, Jaguar and Land Rover said in an e-mailed statement. “We have to take responsible and rapid action to ensure our business is aligned and right-sized for the challenging environment we face.”

The jobs cuts come after the two carmakers offered voluntary redundancy to about 200 manufacturing workers in October. That offer was oversubscribed, prompting them to extend the terms to as many as 400 employees, Foster said.