LONDON (AFP) - Jaguar is to halt production at one of its plant in Coventry, central England, with the loss of more than 1,000 jobs, because of weak demand for the luxury brand, US parent company Ford announced.
Jaguar will also pull out of Formula One racing from the end of the current season, Ford said.
Around 750 white collar workers and 400 production staff will lose their positions at the Browns Lane site but Ford said there would be no compulsory redundancies.
The site has been producing cars for more than 50 years and currently employs more than 2,000 workers.
Last mobnth Ford cut production at the three British sites making Jaguar cars because of lacklustre sales, particularly in the United States.
Ford's Premier Automotive Group, which comprises Aston Martin, Jaguar and Land Rover, made a 362 million-dollar loss in the second quarter, the group's results showed in July.
Union leaders condemned the announcement, warning it could sound the death knell for the luxury car maker.
Derek Simpson, general secretary of the Amicus union, said: "Ford's decision may kill off Jaguar. Our members will fight like tigers to keep the lion's share of quality car manufacturing in Britain."