Crunch sees Land Rover cut output

The economic slowdown and the credit crunch has led motor giant Land Rover to announce cuts in production.

The company said there will be no redundancies or lay-offs among the 5,000-strong workforce at its plant in Solihull, West Midlands, as a result of the changes.

The luxury car-maker was taken over by Indian motor giant Tata in June, along with its sister firm Jaguar. The firm said it was important to match demand with supply, adding that it was not prepared to stockpile vehicles.

From early next month until the end of the year, there will be no production of Discoveries or Land Rover Sport models on Fridays and there will be a "slight slowing" of the production line.

In addition, the night shift making Range Rovers will be suspended from early October for the rest of the year.

The company would not say how many vehicles will be affected by the changes, but a spokesman said it only amounted to a "very small" percentage of its annual production.

The spokesman added that sales were strong in China, Russia, Brazil, Australia, the Middle East and North Africa, but conditions were "very challenging" in the UK and United States.

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