JCB cuts engine production by 40%

JCB is reducing engine production by almost 40% because of lower demand caused by the downturn in the worldwide economy.

In 2007 the company built 33,000 of its 444 engines at its factory in the midlands but is predicting an output of just 21,000 units in 2009. With the majority of JCB’s engines going into its own machinery, the cutback in production was inevitable

The company has seen demand for its machinery drop dramatically even in countries like India, Russia and China that were previously performing strongly and JCB’s CEO Matthew Taylor said the firm has stopped building machines for the former USSR until stock at its dealers are sold. “What you thought was four months' stock is probably more like a year’s,” he said.

According to Taylor the UK is one of the three hardest hit countries and areas like agriculture, quarrying/aggregates and waste handling which have previously escaped the worst of the downturn, are now also feeling the squeeze.