The cuts have stoked fears for the estimated tens of thousands of people across the UK who are employed in the supply chain to Britain\u2019s biggest carmaker, particularly in the West Midlands<\/a>. JLR made the cuts in the face of intense competition from Chinese carmakers, Donald Trump\u2019s tariff wars and the fallout from a cyber-attack.<\/p>\n Roberts warns the automotive demand will \u201ccontract inexorably over the next five years\u201d without significant support and changes in government policy.<\/p>\n \u201cNobody knows the rate or speed of that decline, but decline it will, because everything is against us, everything, [when] making cars in the UK,\u201d says the chair of Evtec, which specialises in high-pressure aluminium die casting and has sites in Coventry and Kidderminster.<\/p>\n The JLR chief executive, PB Balaji, hopes to save \u00a31.7bn through the cuts which will mainly affect employees at its head office. He said the automotive industry \u201cfaces significant challenges, with technological change amid intense competition and ongoing geopolitical uncertainty\u201d.<\/p>\n Firms such as those making aluminium die castings for car parts will be affected by Jaguar Land Rover\u2019s moves. Photograph: Fabio De Paola\/The Guardian<\/p>\n The decision marks the latest in a string of worrying signs of decline for the industry, threatening Andy Burnham\u2019s ambition to \u201csafeguard sovereign manufacturing\u201d and reindustralise Britain.<\/p>\n Corin Crane, the group chief executive of the Chamber of Commerce in Coventry and Warwickshire, believes 140,000 to 180,000 people are employed in supply chain businesses connected to JLR.<\/p>\n It is hard to overstate exactly how important JLR is to the West Midlands economy, he says. \u201cWe make stuff here and so many of our businesses are in the supply chain for JLR and even if not manufacturing companies, the business support companies, the professional services, all of them have contracts with this great big supplier.<\/p>\n \u201cSo when there\u2019s problems with JLR, it\u2019s a broader problem for the West Midlands as a whole.\u201d<\/p>\n Oxford Economics has estimated<\/a> JLR contributed \u00a38.7bn to the West Midlands in 2024, equivalent to 4.7% of the regional economy \u2013 as well as contributing \u00a31.1bn to the north-west, where it has a plant at Halewood.<\/p>\n The importance of JLR to the local and UK-wide economy was underscored last year when the devastating hack left suppliers struggling<\/a> and hit UK GDP<\/a>. JLR scrambled to set up a help desk for its supply chain, including more than 700 companies making the 30,000 parts that can make up a luxury car.<\/p>\n JLR contributed \u00a38.7bn to the West Midlands in 2024, according to Oxford Economics. Photograph: Bloomberg\/Getty Images<\/p>\n The hack paused production for four weeks, leaving factory workers stuck at home, and costing the manufacturer \u00a3200m. It was one of several factors contributing to JLR posting a profit before tax of just \u00a314m<\/a> \u2013 down from \u00a32.5bn the year before.<\/p>\n This time, white-collar managers and research and development staff are in the crosshairs, with the cuts expected to be largely found through UK voluntary redundancies in those areas. However, there are concerns over a ripple effect if JLR\u2019s struggles persist.<\/p>\n Evtec\u2019s Roberts has united a loose collective of about 15 business that supply JLR, making up \u00a32bn of revenue and with 12,000-14,000 employees, in order to speak with a \u201ccommon voice\u201d about the issues they are facing.<\/p>\n He describes JLR as the \u201ckingpin\u201d of the UK\u2019s automotive industry and warns that challenges facing the manufacturer had knock-on effects on suppliers and smaller car manufacturers including McLaren, Aston Martin, Bentley and Rolls-Royce.<\/p>\n \u201cThere will come a point that the decline will be unstoppable and that will be the end of the motor industry as we currently know it. We\u2019ll just be a very small volume player,\u201d he says.<\/p>\n Industry experts have long warned of the growing challenges facing car manufacturers in the UK, from the increased competition from China, Trump\u2019s tariffs and the transition to electric vehicles.<\/p>\n Healey acknowledged it was a \u201cworrying time\u201d for JLR\u2019s workers and suppliers on Monday, while the mayor of the West Midlands, Richard Parker, announced a \u00a3500,000 support package for JLR staff. The business secretary, Jonathan Reynolds, who has ruled out state support to protect the jobs, will meet the company and the Unite union to discuss the cuts on Tuesday.<\/p>\n
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