Jaguar Land Rover (JLR) is to announce it will cut up to 5,000 jobs from its United Kingdom workforce, it is understood.
-China trade war for slumping sales in China; JLR sales were down 22 percent in the world's largest auto market.
Meanwhile, Ford signalled "significant" cuts among its 50,000-strong European workforce under plans to make it more competitive and make its business more sustainable.
In 2017, 1,000 temporary contract workers at its plant in Solihull lost their jobs.
The retrenchment sits on the blunt edge of a £2.5bn cost-cutting plan, precipitated by declining Chinese sales, the ongoing fallout from the dieselgate scandal and fears for Britain's trading status post Brexit. Through our modern Industrial Strategy, we are building on those world beating strengths and investing in the future to put the United Kingdom at the forefront of the next generation of electric and autonomous vehicles.
The company also announced new investment in electric technology at its Wolverhampton engine manufacturing centre and the launch of a new battery assembly centre at Hams Hall, North Warwickshire.
In the United Kingdom, "continuing uncertainty related to Brexit" has been blamed.
'We are taking decisive action to help deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry, ' said chief executive Ralf Speth. Sales fell 6% to 22.7m units previous year, the China Passenger Car Association said.
Fellow vehicle makers Mini, Rolls-Royce and Honda have said they would temporarily close plants in April after Brexit to avoid any disruption.
It is believed most of the job losses will affect JLR's managerial, research, sales and design staff.
"Our results were undermined by slowing demand in China, along with continued uncertainty in Europe over diesel, Brexit and the WLTP changeover".
Britain's largest carmaker, which at the start of a year ago employed 40,000 around the country, said 1,500 workers had left by the end... Rolls-Royce is part of what I would call the British industrial crown jewels.
China is the company's biggest and most profitable market.
In June, the company said it would move production of the Land Rover Discovery sport utility vehicle to Slovakia from Birmingham, England, to make room for future electric cars.
JLR also employs around 10,000 people in Solihull - its biggest factory - and around 3,200 at its Jaguar factory in Castle Bromwich, where a three-day week was introduced in the autumn.
It has hired 4,000 workers in China since 2014. In the past year alone, the company's global product portfolio has expanded to include the all-electric Jaguar I- PACE, the Range Rover and Range Rover Sport with PHEV derivatives and, most recently, the new Range Rover Evoque, also with next-generation hybrid technology.
But the company has been saying for more than a year that Brexit uncertainty would eventually take its toll on the perception of the United Kingdom as a stable and competitive base for global manufacturing.