Jaguar Land Rover aiming for £2.5 billion in cuts
The coronavirus pandemic has forced JLR to rethink its financial goals.
The coronavirus pandemic is forcing Jaguar Land Rover to rethink its cost cutting plan following a pre-tax loss of £413 million for the quarter ending in June.
As a result the Tata-owned firm is now aiming to save £2.5 billion for the year,saying in a statement that its outlook for the year is currently "very uncertain". It does, however, expect sales – and as a result cashflow and profitability – to improve as lockdowns begin to ease all over the world.
China, a key market for the brand, is already showing signs of recovery.
"We are quite optimistic about the way China is ramping up in terms of overall sales volume," Tata Motors group chief financial officer P.B. Balaji said on Friday.
Jaguar Land Rover is also continue to discuss its funding with the UK government, despite it having strong liquidity and a spread out debt repayment schedule.
Thierry Bollore was recently announced as Jaguar Land Rover's next CEO, replacing Ralf Speth who had served in the role for the last decade.
Bollore, the former Renault boss, took the top role at the French Firm following the downfall of Carlos Ghosn two years ago but departed last October following tensions with Alliance partner Nissan.
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