JLR To Reduce Production Capacity By A Quarter

Jaguar Land Rover (JLR) is to slash its manufacturing capacity by 25 per cent over the next five years and to write off investment in products that will be heading to the scrap heap, under the leadership of the CEO Thierry Bollore.

Automotive News Europe reports that JLR will take a non-cash charge of around £1 billion in Q1 of 2020 related to higher previous spending and projects that will not be completed, according to an investor presentation.

An electric replacement for the Jaguar XJ sedan is one of the projects that has been scrapped.

JLR, owned by Tata Motors, has new business plans under the reign of Bollore, which include making the entire Jaguar range electric within the next four years while allowing the Land Rover SUV brand more time to convert from fossil fuels.

The company said on 26 February that it has lowered its breakeven point to around 400,000 vehicles a year, down from 600,000.

The car manufacturer’s decision to move away from traditional internal combustion engines has been driven by a seismic shift across the entire auto industry looking to adhere to stricter emissions rules.

It will be a challenge for JLR, which has struggled to comply with pollution standards and had also seen a decline in sales in China prior to the pandemic.

The carmaker will introduce six full-electric Land Rover variants in the next five years. By 2030, it expects all of its Jaguar models and 60 per cent of Land Rovers sold to be zero-emission vehicles.

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