It was in July 2018, that Jaguar Land Rover Automotive announced that the UK Government needed to urgently provide certainty for business in...
It was in July 2018, that Jaguar Land Rover Automotive announced that the UK Government needed to urgently provide certainty for business including guaranteed tariff-free access and frictionless trade with the European Union. Prof. Dr. Ralf Speth, CEO, Jaguar Land Rover had said back then "Jaguar Land Rover's heart and soul is in the UK. However we, and our partners in the supply chain, face an unpredictable future if the Brexit negotiations do not maintain free and frictionless trade with the EU and unrestricted access to the single market. We urgently need greater certainty to continue to invest heavily in the UK and safeguard our suppliers, customers and 40,000 British-based employees."
A couple of months later, in October 2018, Tata Motors, announced a turnaround plan for JLR which had been hit hard by trade tensions between China and the US, low demand for diesel cars in Europe and worries over Brexit. It was called 'Project Charge' and Tata Motors said it planned to cut costs and improve cash flows at Jaguar Land Rover by $3.2 billion in the next 18 months. JLR plans to launch several new vehicles but the big one will be the new Range Rover Defender which will be showcased soon. Over the next few years JLR will also offer a hybrid or electric version of all its models by 2020.
Also Read: Tata Motors Reveals Turn Around Plan For JLR
Now, a report in 'The Sunday Times' suggests that Tata Motors has reportedly assured Prime Minister Theresa May of the company's commitment to Britain's automotive industry despite the ongoing turmoil of Brexit. According to report, Tata Sons chairman Natarajan Chandrasekaran is understood to have written to the British premier to stress that the Tata Group plans to keep investing in JLR and has no intention of selling the firm.
Land Rover has already teased the new-gen Defender and it will make its world debut in 2019
The company in fact seeks the support of the government for electric and driverless technology, and for building a battery factory in the Midlands region of England. Tata Motors made a loss of Rs. 10.49 billion for the July-September quarter, compared to a profit of Rs. 24.83 billion a year ago. JLR reported a loss of 101 million pounds during the quarter and its margin on earnings before interest, tax, depreciation and amortisation fell 130 basis points to 9.9 percent.
Retail sales of Jaguar saloons and Land Rover SUVs fell 13.2 percent to about 130,000 units, hurt particularly by tariff changes in China and escalating trade tensions.
As part of the turnaround plan, JLR will first focus on cash saving by reducing non-product investments and speeding up asset sales. In the near term it will improve efficiency in areas including purchasing and material cost, manufacturing and logistics and people and will focus on strategic and non-core asset sales. JLR has already reduced the number of production days at its UK plants in Castle Bromwich and Solihull.
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