Jaguar Land Rover ‘reimagines’ itself and cuts 2 000 jobs (update)
The new CEO of Jaguar Land Rover, Thierry Bolloré (ex-Renault), has just revealed a new global strategy for the Indian-owned British carmaker. JLR wants to ‘reimagine’ itself as an all-electric luxury brand from 2025 and strives to become a net-zero carbon business from 2039. Meanwhile, it has also announced to cut 2 000 jobs worldwide.
By the end of this decade, all Jaguar and Land Rover nameplates will be available in pure electric form. The first all-electric Land Rover will be launched in 2024, and by 2026, the brand will welcome six pure electric variants.
Jaguar is to be ultimately ‘reimagined’ as an all-electric brand from 2025 to “realize its unique potential” and be reshaped into a brand of modern luxury, unique customer experiences, and a positive societal impact.
Thierry Bolloré: “We are harnessing those ingredients today to reimagine the business, the two brands, and the customer experience of tomorrow. The Reimagine strategy allows us to enhance and celebrate that uniqueness like never before. Together, we can design an even more sustainable and positive impact on the world around us.”
Sustainability at the center
At the heart of its Reimagine plan will be the electrification of both Land Rover and Jaguar brands on separate architectures with two clear, unique personalities.
In a Land Rover, vehicle and driver are united by adventure. By breaking new ground, confronting new challenges, and not being content with the expected, Land Rover truly helps people go ‘Above and Beyond’.
Land Rover will welcome six pure electric variants in the next five years, as it continues to strive to be the world leader of luxury SUVs through its three families of Range Rover, Discovery, and Defender. The first all-electric variant will arrive in 2024.
By the middle of the decade, Jaguar will have undergone a renaissance to emerge as a pure electric luxury brand with a dramatically beautiful new portfolio of emotionally engaging designs and pioneering next-generation technologies.
Although the nameplate may be retained, the planned Jaguar XJ replacement will not form part of the line-up, as the brand looks to realize its unique potential. Jaguar and Land Rover will offer pure electric power, nameplate by nameplate, by 2030.
By this time, in addition to 100% of Jaguar sales, it is anticipated that around 60% of Land Rovers sold will be equipped with zero tailpipe powertrains.
Zero carbon by 2039
Jaguar Land Rover aims to achieve net-zero carbon emissions across its supply chain, products, and operations by 2039.
As part of this ambition, the company is also preparing for the expected adoption of clean fuel-cell power in line with the maturing hydrogen economy. Development is already underway, with prototypes arriving on UK roads within the next twelve months as part of the long-term investment program.
Central to that new journey and establishing different personalities for the two brands is the unique architecture strategy.
Land Rover will use the forthcoming flex Modular Longitudinal Architecture (MLA). It will deliver electrified internal combustion engines (ICE) and fully electric variants as it evolves its product line-up in the future.
Land Rover will also use pure electric-based Electric Modular Architecture (EMA), supporting advanced electrified ICE. Future Jaguar models will be built exclusively on pure electric architecture.
More simple and more agile
Reimagine is designed to deliver simplification too. By consolidating the number of platforms and models being produced per plant, the company will establish new benchmark standards in efficient scale and quality for the luxury sector. Such an approach will help rationalize sourcing and accelerate investments in local circular economy supply chains.
With Reimagine, Jaguar Land Rover wants to right-size, repurpose, and reorganize into a more agile operation. Creating a flatter structure is designed to empower employees to create and deliver at speed and with a clear purpose.
To accelerate this efficiency of focus, the company will substantially reduce and rationalize its non-manufacturing infrastructure in the UK. Ultimately, JLR aims to be one of the most profitable luxury manufacturers in the world.
Minus 2 000 jobs
A few days after the ‘Reimagine’ presentation, JLR has announced that it will cut 2 000 jobs in this non-manufacturing part of the company. “We prepare a net reduction in our salary mass of about 2 000 people all over the world in our next financial year,” a press release stated. The same release points out that factory personnel won’t be affected.
The manufacturer has reassured that it won’t close a factory. In Solihull (where also Land Rovers are assembled), the pure electric platform of Jaguar will find its home turf. About Castle Bromwich (in the same West Midlands region), where Jaguars are currently assembled, CEO Thierry Bolloré declared that he has “a lot of ideas” for this production unit.
Leadership thanks to Tata Group
To realize its vision, JLR will curate closer collaboration and knowledge-sharing with Tata Group companies to enhance sustainability, reduce emissions, and share best practices in next-generation technology, data, and software development leadership.
Jaguar Land Rover has been a wholly-owned subsidiary of Tata Motors, in which Tata Sons is the largest shareholder since 2008.
Mr. N. Chandrakesan, chairman of Tata: “The Reimagine strategy takes Jaguar Land Rover on a significant path of acceleration in harmony with the vision and sustainability priorities of the wider Tata Group.”
“Together, we will help Jaguar realize its potential, reinforce Land Rover’s timeless appeal, and collectively become a symbol of a truly responsible business for its customers, society, and the planet,” he concludes.
A serious challenge
Although part of the Tata Group, Jaguar Land Rover Automotive Plc. is a real British car manufacturer, with almost all UK activities. It remains to be seen what influence Brexit will have on the plans of the company.
More importantly, we’ve heard this discourse of electrification, sustainability, and profitability quite a few times lately, expressed by almost all direct competitors of JLR.
One can see that Land Rover indeed has a formidable reputation within the niche market it is operating in. If it can accelerate its electrification and at the same time remain to be seen as the paragon of adventure and offroad presence, there is a good chance it can succeed.
The smaller partner within JLR has an even bolder step to take. In the premium and luxury market, Jaguar remains a more modest player. Lately, it has been betting on two inherently different qualities, luxurious comfort, and sportiness.
It remains to be seen how it can translate this into the electric area, given the fact that it is surely not the first or the quickest to go for electrification and a sort of autonomous driving. So, there’s a real challenge, together with finding enduring profitability, of course.