LONDON, Sept 17 (Reuters) - Britain's biggest carmaker
Jaguar Land Rover said it will go down to a three-day
week at its Castle Bromwich plant in central England just days
after its boss warned about the impact of Brexit and diesel
policy on manufacturing.

The Castle Bromwich facility will operate a three-day week
from October until the beginning of December in a move which
will affect around 1,000 staff but avoid job cuts, a spokeswoman
said.

"In light of the continuing headwinds impacting the car
industry, we are making some temporary adjustments to our
production schedules at Castle Bromwich," the company said in a
statement.

Last week, the firm's boss Ralf Speth warned that the wrong
Brexit deal could cost tens of thousands of car jobs and risks
production at the firm, especially if there are delays at ports
and on motorways due to customs checks.

He also said that the government had demonized diesel cars,
contributing to 1,000 job losses at the company earlier this
year.

Conservative lawmaker and Brexit supporter Bernard Jenkin
earlier on Monday accused Speth of "making it up" when asked
about the automotive boss's comments, which included a warning
that it was already more attractive to build cars abroad with
Brexit adding uncertainty.

The Unite (Frankfurt: 634811 - news) union blamed Prime Minister Theresa May as she
battles to convince many of her own lawmakers to support her
Brexit proposals which she says will maintain frictionless trade
and protect jobs, but have angered many Brexiteers.

"This is the continuing effect of the chaotic mismanagement
of the Brexit negotiations by the government which has created
uncertainty across the UK’s automotive industry and the
manufacturing sector generally," said Assistant General
Secretary Tony Burke.

A slump in demand for diesel cars is also having a big
impact on the firm.

About 90 percent of Jaguar Land Rover's (JLR) sales in
Britain are diesel models, which compares with around 45 percent
globally, the company said earlier this year.

Diesel sales have fallen this year nearly 30 percent in
Britain, Europe's second-biggest car market, mirroring similar
drops in other major markets, as governments crack down on the
segment in the wake of Volkswagen (IOB: 0P6N.IL - news) emissions scandal.

JLR said on Monday it was investing to protect its plants in
the future.

"We have invested more than £4bn since 2010 to future proof
manufacturing technologies to deliver new models," its statement
said.
(Reporting by Costas Pitas; editing by Michael Holden)