Thousands of workers at Jaguar Land Rover have voted for a pay freeze and a shorter working week to avoid compulsory job losses amid further evidence of the collapse in British car sales.
New registrations fell 21.9% last month compared with February 2008, leading to renewed calls for the government to give the industry, which has been hit by a wave of job losses and production suspensions, more help.
Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: "New car registrations continue to decline and although government recognises the strategic importance of the UK motor industry, urgent action is still needed.
"Other European countries have been proactive in assisting their automotive industries and it is imperative that the UK government increases the pace in responding to industry proposals for a scrappage scheme [paying consumers to get rid of their old cars] and access to finance and credit."
The latest fall was less dramatic than expected in the wake of January's 30% slump, but February is one of the quietest months in the car sales calendar and attention will now focus on the March figures, which would normally be boosted by the change to the 09 registration plate.
Jaguar Land Rover said the deal with its workforce would save about £68m as the company battles with the global downturn in automotive markets.
The key elements of the agreement will see workers at the manufacturing operations at Castle Bromwich and Halewood switch to a four-day week and accept a pay freeze until 2010 in exchange for the company's agreement that there will not be any compulsory redundancies among non-management employees for two years. Salaried staff have agreed a three-hour extension of the working week to 40 hours and a pay freeze.
David Smith, Jaguar Land Rover's chief executive, said: "This is an important step for us as a standalone business. It also confirms our determination as a team to steer Jaguar Land Rover through these extraordinary and challenging times, so that our business is ready to take advantage when the downturn finally ends."
In a joint statement the Unite and GMB unions, which backed the deal, said: "The choice for our members was clear – further mass redundancies or what is undoubtedly some short-term pain in order to secure the future for our members and their families."
Yesterday's figures showed British sales of Land Rovers fell 21% last month – broadly in line with the UK market – but Jaguar sales more than doubled, boosted by the Jaguar XF.
Ford, which has the two top sellers, the Fiesta and Focus, saw its sales dip by 12.25%. Mini sales were down 10.79% and Peugeot down 42%.
Among the more specialist marques, Bentley sales were down 82% to 18 vehicles, but sales of Hummer luxury 4x4 vehicles tripled, compared with February last year, to 15.
