By on January 10, 2019

Land Rover Discovery

For now, Tata-owned Jaguar Land Rover isn’t saying whether any of its British plants will close as a result of the automaker’s cost- and job-cutting spree, nor whether we’ll see a shedding of models from its portfolio. Many would argue there’s some Jags in need of cutting.

With global sales falling 4.6 percent in 2018, the automaker claims the next phase of its “Charge and Accelerate” transformation plan will leave 4,500 UK workers out of a job.

JLR’s plan is to free up nearly $3.2 billion in costs and cash flow over the next 18 months, helping it realize long-term profit growth while creating a “leaner, more resilient organisation.” It’ll certainly be leaner on the personnel side — 2018 saw an additional 1,500 UK workers laid off. The latest cuts, some accomplished through a voluntary redundancy program, amount to 10 percent of the automaker’s UK workforce.

Dr. Ralph Speth, JLR CEO, called the cuts a response to “multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry.”

Jaguar F-Pace 2.0TD - Image: Jaguar

Basically, JLR’s in a bind the world over. The company’s Chinese-market sales took a steep tumble in 2018, falling 21.6 percent. Meanwhile, Europe’s sudden pivot away from diesel-powered vehicles left the company holding a dirty bag. Its Jaguar car range no longer resonates with many North American buyers, and trade uncertainties and the ongoing Brexit saga only adds to the company’s woes. The company’s profits turned to losses in 2018.

While the automaker didn’t mention the fate of specific products in its announcement, it’s generally believed that cuts are coming to Jaguar’s model range, spurred by the public’s move away from sedans. Rumors last year suggested the company might be considering an all-electric Jaguar range. Certainly, JLR took the opportunity today to talk up green investments born of newfound savings.

“These investments include today’s announcement that, from later this year, next-generation Electric Drive Units (EDU) will be produced at the company’s Engine Manufacturing Centre in Wolverhampton,” the company stated. “The Battery Assembly Centre will be one of the largest of its kind in the UK, using new production techniques and technologies to manufacture battery packs for future Jaguar and Land Rover vehicles.”

[Image: Jaguar Land Rover]

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16 Comments on “Under Fire From Multiple Foes, Jaguar Land Rover to Cut 4,500 UK Workers...”


  • avatar
    ajla

    “Many would argue there’s some Jags in need of cutting.”

    Some? How about all.

  • avatar
    SCE to AUX

    They could start by adding more headroom inside their vehicles.

  • avatar
    jatz

    Exotic car brands seem to have the shelf life of sexy actresses and Jaguar hasn’t been va-va-voom since Liz Taylor was, too.

  • avatar
    28-Cars-Later

    Put a call into Subaru.

  • avatar
    cdnsfan27

    Let me go through the line up and see:

    XE- Great handling, outside looks good, interior needs work, kill or merge with
    XF- Dead in the water, kill or merge with XE
    XJ- New flagship coming out next year, promises to be spectacular, keep
    F-Type- Still sells well, major revision due in 2022, keep.
    E-Pace- very well built, does not lease well, handles like a hot hatch in R-Dynamic, keep
    F-Pace- Best seller, needs interior upgrades soonest, keep
    I-Pace- Order books are full, keep
    J-Pace- due sometime next year, should be a winner.

    All in all not a bad line up. Interiors need to be better, now that most dealerships are twinned with Rover Jag SUV’s provide a sportier and less expensive alternative.

  • avatar
    sportyaccordy

    What reason does anyone have to buy a Jag over it’s respective competition? There’s just no value proposition

  • avatar
    jfk-usaf

    I really like both of these companies. Jag needs to dive further into SUVs and maybe take a page from Mercedes and BMW’s book with more “reasonably priced” models. I’m really not sure what LR is up to. Their trademark squared off designs are now round and “Explorer-esc”. It seems that other then the top of the line RR there really isn’t a compelling reason to write them a check for a car. Their entry level supposedly volume models are no nicer than a non-lux brands products. The old LR2 was a Land Rover. It had a Land Rover interior which was nice in its own LR way. The Disco Sport just seems cheap on the inside and Evo is no better. The new Disco looks like a melted mailbox. The RR Sport looks no different than any other SUV on the road. Its obviously just my opinion but when you ask for the money that they ask for you need to stand out above the competition. I get the history and off road ability but you need more than that.

  • avatar
    jfk-usaf

    I really like both of these companies. Jag needs to dive further into SUVs and maybe take a page from Mercedes and BMW’s book with more “reasonably priced” models. I’m really not sure what LR is up to. Their trademark squared off designs are now round and “Explorer-esc”. It seems that other then the top of the line RR there really isn’t a compelling reason to write them a check for a car. Their entry level supposedly volume models are no nicer than a non-lux brands products. The old LR2 was a Land Rover. It had a Land Rover interior which was nice in its own LR way. The Disco Sport just seems cheap on the inside and Evo is no better. The new Disco looks like a melted mailbox. The RR Sport looks no different than any other SUV on the road. Its obviously just my opinion but when you ask for the money that they ask for you need to stand out above the competition. I get the history and off road ability but you need more than that.

  • avatar

    They better start working on flying cars because Tesla does.

  • avatar
    Art Vandelay

    Is that the Explorer ST? Oh wait.

  • avatar
    Tstag

    Most of JLRs problems are short term:
    China – likely to be resolved shortly pending US/ China trade agreement
    Brexit – could be solved by April
    Diesel – lots of hybrids and electric cars on the way at JLR

    Longer term issue is what to do with the XE. If Jaguar simply axe it then the XF sales will probably improve. These kind of cars don’t sell well in the US and their home market is saturated with cheap deals on 3 series and C class models.

    Electrifying Jaguar makes sense. Jaguar should focus on Sportscars, crossovers and the XJ. Land Rover can handle anything else.


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