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Aston Martin Lagonda Global Holdings PLC

Dark days for British motoring as Jaguar Land Rover plans two-week factory shutdown due to falling sales

A reduction in global demand, particularly in China, caused the firm’s sales in September to fall 12.3% on the year before to 57,114

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The ongoing trade dispute between the US and China has been blamed as one of the key reasons behind the slump

In another blow to the British car making sector, Jaguar Land Rover has announced that it will close its plant in Solihull for two-weeks this month due to a drop in demand for its vehicles.

A reduction in global demand, particularly in China, caused the firm’s sales in September to fall 12.3% on the year before to 57,114.

READ: Aston Martin flop leads to reported IPO devaluation for law firm Vannin Capital

The company’s chief commercial officer, Felix Brautigam, blamed the ongoing trade dispute between the US and China as the reason behind falling sales in the country, saying the spat was pushing up prices.

Sales in China dropped 46.2% in September, while in the UK and North America sales declined 0.8% and 6.9% respectively.

As a result of the gloomy figures, the firm said it was closing the West Midlands plant for two weeks due to the “challenging conditions” in its key markets.

However, Des Quinn of the Unite union criticised the UK government for the company’s woes, citing the “shambolic” handling of Brexit negotiations and the “trashing” of diesel engines which was “damaging the UK car industry and the supply chain”.

The news follows misery for fellow British car maker Aston Martin Lagonda Global Holdings PLC (LON:AML), which yesterday continued its flop following a float last week on the London market with shares closing 16% below its 1,900p offer price.

In afternoon trading on Tuesday, the shares had recovered slightly, up 2.04% at 1,632p.

Quick facts: Aston Martin Lagonda Global Holdings PLC

Price: £5.75

Market: LSE
Market Cap: £1.31 billion
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