Jaguar Land Rover is reducing a quarter of its production in the next five years, Automotive reporting. The news came through a presentation to investors.
If there’s a popular JLR machine that you know and love, however, don’t be too concerned – the brand’s cuts will come mainly in the form of projects that have been announced, but not yet started, like the Jaguar XJ sedan that has already reported that it won’t happen.
JLR has promised that it will maintain all of its manufacturing facilities – it is only paving the way for future development, especially with regard to the production of electric vehicles. The Jaguar will be fully electric in 2025, with Land Rover joining the group in 2039. JLR will likely take these resources and channel them towards creating a unique electrification style.
This news also comes in the wake of New CEO Thierry Bollore announcing that JLR’s breakeven point in terms of car sales has been reduced from 600,000 to 400,000. If you have the flexibility to rework your operation, now is a good time to do so.
Auto News also reported that JLR is looking to partner with an outside company to Create that fully electric platform. It would be very expensive to try to create this platform internally; it takes a lot of research and trial and error before automotive companies are really able to improve their EV base; it will be necessary for JLR to find this external partner if it wants to have a Jaguar fully electric line by 2025. According to Bollore, the decision to work with a partner “was a matter of scale and speed to reach the market. “
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It makes sense. Ford did something similar when using Volkswagen’s MBE electric platform to develop its new EV host. Companies that have started developing electric platforms may benefit as other automakers realize they will need a solid foundation to develop their next carbon-free plans.