Jaguar Land Rover Now Targeting $3.3 Billion in Cuts

Matt Posky
by Matt Posky
jaguar land rover now targeting 3 3 billion in cuts

Jaguar Land Rover has increased its savings target for the year to $3.3 billion (£2.5 billion) following a $540 million (£413 million) pre-tax loss for the quarter ending in June. Losses are hardly uncommon within an industry shaken by the pandemic, but JLR went into this year already confronting an uphill battle.

In 2019, the company was deep in the midst of a restructuring plan aiming at $2.5 billion in life-sustaining savings. Unfortunately, the move required the elimination of thousands of positions as it tried to imagine the effects of Brexit and contend with falling sales in its largest markets. That includes China, which the firm assumed would offer continued growth in the months leading up to coronavirus’ big debut and increasing political tensions between the Communist Party of China and United Kingdom.

Having selected former Renault boss Thierry Bollore as its next CEO, the brand’s current leadership is basically hoping China rebounds.

Current JLR boss Ralf Speth even said that he was confident the market was in recovery. While European sales continued looking unhealthy, Chinese volumes actually pitched up to 23,726 units in the second quarter, less than 1,000 deliveries shy of the same period in 2019. However, the overall situation seems to have worsened through the summer.

In July, Chinese state-run media reported that British firms like Jaguar Land Rover could face severe consequences following the UK’s ban on Huawei’s entry into the nation’s 5G telecom network over national security concerns. “If the UK upholds such a hostile attitude towards China, Beijing may have no other choice but to strike at British companies like HSBC and JLR,” a China Global Times article stated in July.

Meanwhile, stringent emissions regulations coming out of the European Union (and China) have hurt a brand that relies heavily on SUVs to remain profitable. You’d think parent company Tata Motors would be furious, but it doesn’t have much room to be critical about profitability after announcing a consolidated net loss of $1.13 billion (84.39 billion rupees) for the quarter ending June 30th — that’s against a loss of 36.98 billion rupees just a year prior.

“The COVID-19 pandemic has deeply impacted the auto industry in Q1FY21. We see some disruption due to the intermittent shutdowns and supply chain bottlenecks,” CEO Guenter Butschek said in the release.

Moody’s Investors Service downgraded Tata’s credit rating last month and has a negative outlook on both firms. Still, the automakers remain optimistic about the future, claiming they’re in a strong position and have spread out their debt to a point where repayment won’t be an issue. Of course, if something does come up, Tata Motors has said it is already in discussions with the UK government about financial assistance for JLR.

[Image: JLR]

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  • Schmitt trigger Schmitt trigger on Aug 03, 2020

    The Chinese Communist Party giveth, The Chinese Communist Party taketh away.

  • Old_WRX Old_WRX on Aug 03, 2020

    I notice the vehicle in the picture casts no shadow. Must be some super-secret new tech they are working on.

  • Jeanbaptiste Any variant of “pizza” flavored combos. I only eat these on car trips and they are just my special gut wrenching treat.
  • Nrd515 Usually for me it's been Arby's for pretty much forever, except when the one near my house dosed me with food poisoning twice in about a year. Both times were horrible, but the second time was just so terrible it's up near the top of my medical horror stories, and I have a few of those. Obviously, I never went to that one again. I'm still pissed at Arby's for dropping Potato Cakes, and Culver's is truly better anyway. It will be Arby's fish for my "cheat day", when I eat what I want. No tartar sauce and no lettuce on mine, please. And if I get a fish and a French Dip & Swiss? Keep the Swiss, and the dip, too salty. Just the meat and the bread for me, thanks. The odds are about 25% that they will screw one or both of them up and I will have to drive through again to get replacement sandwiches. Culver's seems to get my order right many times in a row, but if I hurry and don't check my order, that's when it's screwed up and garbage to me. My best friend lives on Starbucks coffee. I don't understand coffee's appeal at all. Both my sister and I hate anything it's in. It's like green peppers, they ruin everything they touch. About the only things I hate more than coffee are most condiments, ranked from most hated to..who cares..[list=1][*]Tartar sauce. Just thinking about it makes me smell it in my head. A nod to Ranch here too. Disgusting. [/*][*]Mayo. JEEEEZUS! WTF?[/*][*]Ketchup. Sweet puke tasting sludge. On my fries? Salt. [/*][*]Mustard. Yikes. Brown, yellow, whatever, it's just awful.[/*][*]Pickles. Just ruin it from the pickle juice. No. [/*][*]Horsey, Secret, whatever sauce. Gross. [/*][*]American Cheese. American Sleeze. Any cheese, I don't want it.[/*][*]Shredded lettuce. I don't hate it, but it's warm and what's the point?[/*][*]Raw onion. Totally OK, but not something I really want. Grilled onions is a whole nother thing, I WANT those on a burger.[/*][*]Any of that "juice" that Subway and other sandwich places want to put on. NO, HELL NO! Actually, move this up to #5. [/*][/list=1]
  • SPPPP It seems like a really nice car that's just still trying to find its customer.
  • MRF 95 T-Bird I owned an 87 Thunderbird aka the second generation aero bird. It was a fine driving comfortable and very reliable car. Quite underrated compared to the GM G-body mid sized coupes since unlike them they had rack and pinion steering and struts on all four wheels plus fuel injection which GM was a bit late to the game on their mid and full sized cars. When I sold it I considered a Mark VII LSC which like many had its trouble prone air suspension deleted and replaced with coils and struts. Instead I went for a MN-12 Thunderbird.
  • SCE to AUX Somebody got the bill of material mixed up and never caught it.Maybe the stud was for a different version (like the 4xe) which might use a different fuel tank.