Elite carmaker Jaguar falls victim to the latest squeeze of the credit crisis in the UK. Slowing demand due to poor consumer confidence and global economic uncertainty has lead to a cutback in operations.
Jaguar is not the first to feel the strain as competitors Bentley, Land Rover and Toyota have also taken similar action to cut back spending due to weak demand. A Jaguar spokeswoman had this to say, “In view of the current sales environment we will be taking action to balance production with demand in the fourth quarter.”
August sales were among the worst in 40 years according to the timesonline.co.uk. Exports are no better off as demand remains weak in the U.S. and Europe.
In addition to weak consumer confidence is the fact that there is less car finance available. Sub-prime finance is very difficult to come by and it’s believed that one major lender is offering only half what it used to.
Echoing the remortgage market, car finance now has stricter lending criteria and requires larger deposits than before.
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