Cutbacks will have to be made warns Mandelson.

Byline: Jonathan Walker 

BUSINESS secretary Lord Mandelson has warned that carmakers need to make cuts in order to remain competitive, as he defended Jaguar Land Rover's announcement that it is to close a West Midlands factory.

Lord Mandelson said he would not "speculate" on the effect this could have on jobs in the region.

But he accepted that workers at Jaguar's plant in Castle Bromwich, Birmingham, and Land Rover's plant in Solihull might fear their jobs were at risk. Speaking to journalists at Westminster, the business secretary claimed: "JLR is showing real commitment in the West Midlands and Merseyside."

But asked if he understood concerns that JLR's announcement could cost jobs in the West Midlands, he said: "Of course.

"Car manufacturers recognise that they have to take out some capacity to lower costs and to remain competitive, and to sustain their companies' viability.

"Now these are often dif-ficult and painful decisions. But I'm not going to speculate about one particular company and their decisions that have not yet been made."

Lord Mandelson said he welcomed JLR's announcement that the LRX car will be built in Halewood, Merseyside, ensuring the plant's future and creating 800 jobs in the north west.

But asked for his view on possible job losses in the West Midlands and the effect on the supply chain, he said: "You are assuming that decisions have been made which have not yet been announced, judging by your question."

He added: "I can't speculate on what different or further decisions the company are going to make. I know that some want to do that, but I can't speculate."

CAPTION(S):

'Won't speculate': Mandelson.