SUV sales are down this year, which means pretty much every automaker that relies on SUVs is having a bad year. Tata’s newly acquired Land Rover brand could be the lone exception – with sales only down 3 percent this year – but the Indian automaker is safeguarding against a bigger market slump by cutting Land Rover production.
According to the Times of India, Tata is removing two shifts from Land Rover’s Solihull plant. In addition, Tata will also be cutting 300 workers from its Halewood plant where the Jaguar X-Type is produced.
Despite only a 3 percent overall drop in sales, Land Rover sales are actually down by more than 30 percent in the U.S. and an equally large number in Europe. Sales from emerging markets in Russia and Asia have helped buoy sales, but Tata is worried that those trends will not be able to hold steady. Overall, the productions cuts are probably a good idea and will help to keep supply in line with demand.
Last year, Land Rover generated the only profits in the Jaguar Land Rover group.
