Jaguar Land Rover to cut production and staff in Solihull

Hundreds of agency workers will not have their contracts renewed with an announcement expected on Monday

The move comes days after JLR reported a rise in sales over the past 12 months, despite weaker conditions in the United Kingdom and Europe. Brexit has added to consumer concerns, prompting potential customers to delay new vehicle purchases, but JLR will stress that its long-term production plans remain unchanged.

The company said in a statement that "continuing headwinds" have forced it to make "adjustments to production schedules and the number of agency staff".

New auto sales fell 5.7 per cent in the United Kingdom in 2017 - the first decline in registrations for six years. But while worldwide sales boomed, United Kingdom sales fell 15.8% because of weakening consumer confidence.

The UK's biggest carmaker blamed the "continuing headwinds" affecting the vehicle industry for the move.

Despite the reported job losses, JLR says it plans to continue to recruit "large numbers of highly skilled engineers, graduates and apprentices".

The automotive industry has warned of the impact of Brexit and a fall in demand for diesel cars amid concern over emissions.

JLR public relations manager Kim Palmer said: "As is standard business practice, Jaguar Land Rover regularly reviews its production schedules to ensure market demand is balanced globally".

That was 2.3 per cent fewer than in 2016.

A source told new agency Reuters that 1,000 roles would be slashed as part of the moves.

Jaguar sales have fallen 26% so far this year and Land Rover dropped 20%.

'As an industry in which investment is heavily reliant on forward planning, industry bodies have been lobbying extensively for greater clarity around a Brexit trade deal. Many of them are based at the Solihull facility.

JLR's global sales grew by 7% in 2017 with the sale of 621,109 cars in a year the company branded as its "best ever" and the seventh consecutive year of successive growth. JLR blamed the continuing uncertainty over diesel for the downturn.

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