Jaguar Land Rover Trimming $6.8 Billion By 2020
Jaguar Land Rover will trim $6.8 billion from its expenses by 2020, in part, because of slowing auto sales in China, Reuters reported.
The automaker will consolidate models to common lines, overhaul its supply chain and build 1 million cars by 2020, according to sources familiar with the plan.
The plan, which is called Leap 4.5 (presumably because the plan cuts £4.5 billion), will also help the automaker afford increasingly difficult emissions standards.
According to the report, the automaker will still spend $4.5 billion per year on research and development. The plan reportedly doesn’t include any layoffs or plant closings.
According to Financial Times, JLR parent company Tata Motors reported a 32-percent sales slowdown in China during the second quarter of 2015. Last year, JLR delivered roughly 460,000 cars, and its meteoric growth was fueled, in part, due to Land Rover sales in China.
In August, an explosion in the Chinese port city of Tianjin hit the automaker particularly hard. The company announced that 5,800 cars had been damaged in the explosion. Nearly 200 people were killed in the industrial incident.
The automaker said the explosion cost them over $370 million.