Jaguar to cut production following US terror attacks

5 October 2001: Jaguar is to transfer up to 3,500 production line workers to other duties for two weeks this month, because of a sales downturn over the terrorist atrocities in the US. The company has cut its predictions for sales in its key US market for the rest of the year, despite a 4.6% increase in sales before September 11.

The production cuts affect XK, XJ and S-Type (above) cars. The shutdowns will reduce output by 1,700 cars and could make the target set at the beginning of the year of breaking the 100,000 barrier in worldwide car sales now not doable.

Meanwhile, US car carmakers have reported sharp drops in car sales in the aftermath of the terrorist attacks. Chrysler sales fell 28%, while Ford reported a 10% drop. General Motors said its sales fell just 3%

However, the downturn may have been brief, as during the last 10 days of the month car sales were above levels seen a year ago. Volvo saw sales figures go up 1.3%. BMW sales are up 4.4%.

But Volkswagen posted a sales drop of nearly 19%, Toyota sales were cut by 4.2%, and Honda by 2%. BB