by Robert Lewis (17 Sep 04)

Jaguar has confirmed that it will stop car assembly at its Browns Lane factory in Coventry, which currently builds the XJ saloons and the XK coupé/convertible series. That will happen in September next year, when the XJ moves to the Castle Bromwich plant, which will also be getting ready for a brand-new sports car range, code-named X150. This all-aluminium model will use the same kind of constructional methods as the XJ saloon, so that Castle Bromwich will be a dedicated aluminium facility, with body panel stamping, body assembly and final assembly all at the same location.

The X150 will be the first of Jaguar's production cars to feature the latest "design language" developed by Ian Callum and hinted at in various concept cars seen at recent motor shows. Sales will start in early 2006.

Browns Lane won't be abandoned, though. While it will no longer be involved in any final assembly, it will still be the company headquarters - Jaguar has been based in Coventry since 1928 - and, rather ingeniously, it will become the wood veneer manufacturing centre for Jaguar, Aston Martin and Land Rover. The famous Jaguar Daimler Heritage Trust will remain on the site. None of that will need the same amount of space as the current operations, and surplus land will be sold off.

The wood veneer manufacturing centre will safeguard 310 jobs, and 425 more will be available for Browns Lane employees who want to move to Castle Bromwich. That leaves 400 manufacturing jobs to be shed, and Jaguar says it will offer its "most generous ever" voluntary redundancy terms. Back-office operations will also be slimmed down, thanks partly to more joint working with Land Rover, and there will be another voluntary redundancy programme for 500 salaried employees, plus a cut of 250 in the number of agency jobs.

Elsewhere in Coventry, the Product Development Centre at Whitley will remain in place, responsible for the design and development of all future Jaguar models. Planning permission has already been granted for a science and technology business park on the site, supported by Coventry Council and various local enterprise agencies.

As well as developing the new X150, Jaguar will broaden the XJ saloon range by adding a turbo diesel model which will go on sale next year. There will also be a higher-performance version of the X-Type diesel. But present-day reality is staring the company in the face, and it has already announced that it's cutting 2004 production by 15,000 cars as it balances supply against current demand. Sales in the important US market, of course, have been in decline.

Jaguar will be taking a hard look at its wholesale and retail operations world-wide, and it will cut the number of cars it supplies to daily rental fleets. It's also withdrawing, at the end of this season, from Grand Prix racing.

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