Jaguar Land Rover said Thursday that it plans to close one factory in England and is introducing a new model of the Range Rover sport utility in a bid to reverse recent losses, according to Associated Press.
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The firm, owned by Tata Motors of India, said it will decide next year whether to shut its factory at Castle Bromwich, which makes Jaguars, or its Solihull plant, which makes Range Rovers.
No compulsory redundancies will be involved in the closure, the company said, but unions reacted angrily to the company's announcement that it will close its defined-benefit pension plan to new members, and make other changes for existing members.
Last month, talks collapsed with the British government about guaranteeing a 340 million pound ($554.7 million) loan from the European Investment Bank to fund research to develop more environmentally friendly cars.
Tata Motors said at the time it was securing guarantees from commercial banks instead.
Jaguar Land Rover has cut about 2,500 jobs in the past year, frozen pay and canceled bonuses.
The company has about 5,000 workers in Solihull, 2,000 in Castle Bromwich and 1,800 at Halewood near Liverpool, where it says it plans to add 800 jobs in the restructuring.
The company also confirmed it will move into production with the compact LRX Range Rover, which was introduced as a concept model at the Detroit auto show last year. The British government has offered a grant up to 27 million pounds ($43.7 million) to support the new model.
A 52 percent drop in sales at Jaguar Land Rover dragged Tata Motors to lose 3.3 billion rupees ($67.2 million) in the April-June quarter. Tata acquired the British car maker from Ford last year.
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