Jaguar Land Rover has confirmed it will cut 4500 jobs as it wrestles with a ideal storm of weakening demand for its premium cars, especially in China, the uncertainties of Brexit and the rising costs of developing the next generation of cars for the electric age.
Vehicle giant Ford has announced plans "significant" cuts among its 50,000-strong European workforce under plans to make it more competitive and make its business more sustainable.
Most of the job cuts at Jaguar Land Rover will come from its United Kingdom workforce.
Total auto sales in China (JLR's biggest market) declined for the first time in two decades a year ago, as the nation's consumers reacted to the economic uncertainty surrounding the introduction of USA trade tariffs.
Sales in China between July and September fell by 44 percent, the biggest slump of any market for the central England-based firm, turning the country from its biggest sales market to its smallest.
Later this year, the company would start producing the next generation electric drive units (EDU) at its engine manufacturing centre in Wolverhampton.
"We are taking decisive action to help deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry", JLR chief executive officer Ralf Speth said in the statement.
Jaguar employs 44,000 workers in the United Kingdom at sites in Halewood on Merseyside and Solihull, Castle Bromwich and Wolverhampton in the West Midlands.
Trade tensions between the United States and China have made Chinese consumers more cautious.
In the United Kingdom, "continuing uncertainty related to Brexit" has been blamed.
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Events beyond the UK's shores have hit the company's bottom line harder still.
Ninety percent of its vehicles are diesel-powered, although it has been investing in new electric and hybrid vehicles.
But it's also spent millions of pounds trying to prepare for Brexit, which could have a disastrous effect on its European sales.
But back in April the manufacturer announced plans to cut 1,000 manufacturing contractor jobs amid falling demand amid anti-diesel sentiment and the pressures of Brexit. In the final quarter of 2018, 1,000 employees at Castle Bromwich were put on a three-day working week.
The new job losses are in addition to the 1,500 workers who left the company past year.
Business Secretary Greg Clark said the company was offering voluntary redundancy packages to its United Kingdom workforce, adding: "This is a commercial decision for the company but nevertheless it will clearly be a worrying time for Jaguar Land Rover employees and their families".
Britain's business minister Greg Clark said a no-deal Brexit would be a disaster for the firm.
Recently JLR announced it would move all production of the Land Rover Discovery to a new plant in Slovakia with plans to hire up to 3,000 workers.
Unite, the country's largest manufacturing union, said it would be pressing the auto maker to safeguard its members' jobs. In China it has increased its workforce by 4,000 since 2014.