London, Aug. 24: Falling sales have forced the Tatas’-owned Jaguar Land Rover (JLR) to cut production of the Land Rover and redeploy almost 300 workers.

Two shifts have been lost at Solihull, the main Land Rover production centre, and three will be cut next month at the Halewood factory on Merseyside, where the Jaguar X-Type is assembled.

JLR has also transferred nearly 300 staff from Solihull to the Jaguar production line at Castle Bromwich because there is no work for them.

JLR is reviewing the Land Rover production on a monthly basis against the background of a weakening demand. Land Rover sales have so far shown only a modest three per cent fall from a record 226,000 vehicles last year, but with the overall demand down 30 per cent in the sectors in which it competes, JLR is being cautious.

Land Rover sales slumped 31 per cent in the tough US market in the year to July but strong demand in the more buoyant Russian and Chinese economies almost offset the sharp fall.

Tata Motors, the new owner, has backed JLR’s four-year investment and model programme as well as the £700-million outlay on environment-friendly technologies, along with the recruitment of 600 engineers. But the Indian car maker has been forced to modify its rights issue planned to help finance the £1.15 billion paid to Ford for JLR because of share price weakness. It will look at asset sales as an option.

The uncertainties about the outlook at Land Rover will slow the recovery in JLR profits. Last year Land Rover accounted for all of JLR’s $650-million (£350 million) profits and almost all of the first quarter’s $421 million.

Jaguar has struggled, but is enjoying a new lease of life and moving into the black.

The Tatas must also decide on whether to replace Ford, possibly with Italy’s Fiat, as JLR’s engine supplier.