Jaguar is to extend planned shutdowns at two Midlands factories this autumn.

The company, according to the FT today, blamed the extended shutdowns on market volatility in the US after last month's terrorist attacks.

The carmaker is to transfer up to 3,500 assembly workers to other duties at its Browns Lane and Castle Bromwich plants, where it assembles its XJ, S-Type and XK models, for two weeks in October.

The US is Jaguar's single biggest market - accounting for almost 50% of its worldwide sales last year. According to new figures published on Monday, Jaguar's North American sales rose by a modest 0.4% to 3,020 cars in September.

This month's extended shutdown is expected to reduce Jaguar's output by about 1,700 cars. (October 3, 2001)