Jaguar XE sales fell 25 percent in the first eight months.
LONDON — Jaguar Land Rover is cutting production to three days at one of its key U.K. plants, as it deals with the fallout with the Brexit vote and a big drop in diesel demand.
The automaker’s Castle Bromwich plant in Birmingham, central England, will operate a three-day week from October until the beginning of December in a move which will affect around 1,000 staff but avoid job cuts, a JLR spokeswoman said.
The plant builds the Jaguar XE midsize sedan, XF large sedan and wagon, the XJ sedan and F-Type sports car.
“In light of the continuing headwinds impacting the car industry, we are making some temporary adjustments to our production schedules at Castle Bromwich,” the company said in a statement.
Jaguar Land Rover’s U.K. sales have fallen 8 percent through August according to the automaker’s figures, while European sales excluding the U.K. have fallen 11 percent.
Automakers in the U.K. have seen sales shift to cheaper cars after the Brexit vote pushed the value of the pound down. That has impacted sales of premium manufacturers such as JLR.
JLR also has blamed the industrywide fall in demand for diesel cars across Europe for the declining sales that have impacted more diesel-dependent premium brands. About 90 percent of Jaguar Land Rover’s sales in Britain are diesel models, which compares with around 45 percent globally, the company said earlier this year.