Jaguar Land Rover has announced plans to close its Solihull plant for two weeks at the end of October.
The decision comes due to the slumping sales in China, where trade conflicts with the US are affecting consumer confidence.
A spokesman from the car manufacturer said: “As part of the company’s continued strategy for profitable growth, Jaguar Land Rover is focused on achieving operational efficiencies and will align supply to reflect fluctuating demand globally as required.”
“Customer orders in the system will not be impacted and employees affected will be paid for the duration of the shutdown.”
Sales at the parent company Tata Motors (NYSE: TTM) fell 12.3 percent in September to 57,114 vehicles.
The Unite union has expressed concern over the closure.
Des Quinn, the Unite national officer, said: “Government ministers’ trashing of diesel, despite the UK making some of the cleanest engines in the world, combined with their shambolic handling of Brexit is damaging the UK car industry and the supply chain.”
“Add into the mix the government’s half-hearted support for the transition to electric and alternatively powered cars and you have a triple whammy facing the UK’s car workers.”
The move has come just weeks after Jaguar Land Rover announced plans to move to a three-day week for 2,000 workers at the factory in Castle Bromwich amid Brexit uncertainty.
Over the past few weeks carmakers including Nissan (TYO: 7201), Toyota (TYO: 7203) and Honda (TYO: 7267) warned that a no-deal Brexit would disrupt production.
“This is yet another worrying sign for the future of Britain’s automotive industry,” said Jack Dromey MP.
“Brexit chaos and the government’s mishandling of the transition from diesel pose a growing threat to the jewel in the crown of British manufacturing and the government is running out of time to save it.”
“[JLR chief executive] Ralf Speth warned of the looming consequences of a no-deal Brexit and we were told by wide-eyed Brexiteers that he was ‘making it up’.”
“It is imperative that the government sorts itself out and gets a deal from the EU that protects jobs and trade because tens of thousands of jobs depend on it.”