Jaguar is to end production of its X-Type car by the end of the year with the loss of up to 300 jobs, the motor giant announced today.
The firm said it would be seeking voluntary redundancies at its factory in Halewood, Merseyside which is also to close for three weeks as part of an extended shutdown starting in September because of "ongoing weaknesses" in the industry.
David Smith, chief executive of Jaguar Land Rover said: "Our industry has been especially badly hit by the recession and the premium sector more than others.
"Jaguar Land Rover's retail sales fell by 28% in the past 10 months. We have taken unprecedented actions to cut costs including reduced production volumes, significant cuts to investment plans and some 2,200 job losses.
"Ceasing production of the X-Type early, with further redundancies and temporary shutdowns at Halewood is necessary to protect our other investment plans."
Mr Smith added that further actions will be determined by the state of the market.
Halewood currently employs around 2,000 workers and is a major employer on Merseyside.