Increasing efficiency to produce a redesigned Freelander could result in Land Rover laying off as many as 770 people at its Solihull factory in England#;s West Midlands, the Financial Times (FT) said.
The newspaper said Land Rover is considering contracting out control of a logistics department which manages component stocking and supply.
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Land Rover told the Financial Times that the Solihull plant, with its 8,500 staff, must improve its efficiency to win approval from Ford for new models.
“It has never been denied that our products could be built in other countries,” a spokesman told the FT. “We want to ensure they are built here.”
Land Rover said management had discussed the proposal with unions but added that it did not determne whether the 770 staff would transfer to a logistics contractor or be re-assigned within the SUV maker#;s other operations, the FT added.
An official told the FT: “Employees would be protected… there is always natural wastage in a company.”
A union offical told the FT that the proposal was “creating serious problems”, adding that negotiations would be “long and difficult”.
