With the recent shuffle of Land Rover’s 300 workers being transferred to Jaguar’s production line, rumors began that Land Rover is in trouble and moved the workers as a panic measure in response to the falling demand of SUVs.
Land Rover will move its 300 workers from its Birmingham plant to a Jaguar plant 20 kilometers away at Castle Bromwich to help produce more units of the XF. According to a Jaguar/Land Rover official, the move is not due to the falling sales of SUVs.
“The arrangement goes back to a pay agreement negotiated with the unions in 2007. It’s an extension of a flexibility agreement,” said Don Hume, director of corporate affairs. Hume said that the two companies will swap workers more often to make operations more flexible and efficient.
Land Rover sales fell to about 18,500 units in the U.S. and 26,500 in the UK during the first seven months of 2008. However, with the help of Russia and China, Land Rover sales only fell 2.7 percent overall.
Source: Automotive News (Subscription Required)