Jaguar Land Rover will cut back a quarter of its production in the next five years, Automotive News ReportsThe news has come through an investor presentation.
If there’s a popular JLR machine you know and love, don’t worry too much – the brand’s cuts will mainly come in the form of projects announced but not yet started, like the Jaguar XJ sedan it already reported won’t happen.
JLR has promised it will keep all of its manufacturing facilities – it just paves a path for future development, especially with regard to electric vehicle manufacturing. Jaguar will be fully electric by 2025 and Land Rover will join the party in 2039. JLR will likely use these resources to channel them to create a unique style of electrification.
This news also comes in the aftermath of new CEO Thierry Bollore announces that JLR’s break-even point in terms of car sales has been lowered from 600,000 to 400,000. If you have the flexibility to rework your surgery, now is a great time to do it.
Auto News also reported that JLR is looking to partner with an outside company to create that fully electric platform. It would be incredibly expensive to try to create that platform internally; it takes a lot of research and trial-and-error before car companies really are able to perfect their EV foundation; it will be necessary for JLR to find that external partner if it wants to have a fully electric Jaguar range by 2025. According to Bollore, the decision to work with a partner was “a matter of scale and speed to get to market. “
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It is logical. Ford has done something similar by using Volkswagen’s electric-only MBE platform to develop its new range of electric vehicles. Companies that have taken a head start in developing electric platforms will be able to take advantage of this, as other automakers now realize they need a strong foundation to develop their upcoming zero-carbon plans.