A new report issued by The Sunday Times states Jaguar Land Rover is working on a new plan called “Leap 4.5” which among others will include cost cuts of up to £4.5 billion ($6.8 billion / €6.3 billion).

A new report issued by The Sunday Times states Jaguar Land Rover is working on a new plan called “Leap 4.5” which among others will include cost cuts of up to £4.5 billion ($6.8 billion / €6.3 billion).

The huge savings will be achieved by developing more models based on the same or a very similar platform, and also by heavily revising the company’s supply chains while the recruitment process is going to be slowed down or even halted.

The good news for Jaguar Land Rover employees is that the cost cut measures will not include layoffs which makes sense taking into account the plan also includes increasing annual production to as much as one million cars by the end of the decade. To achieve this, JLR announced a few months ago plans to open up a new plant in Slovakia which will start making cars in 2018 and will eventually assemble 300,000 cars per year once production will reach full potential.

JRL’s Leap 4.5 project is being elaborated as a way to offset the effects of slowing sales in China where deliveries fell by 32% in the July - September interval compared to the same period of 2014. In addition, JLR needs additional funds to cover the increasing costs related to meeting the more stringent emission standards. The report goes on to specify Jaguar Land Rover’s £3 billion ($4.5 billion / €4.2 billion) annual capital spending budget will not be affected by the new plan which means research and development will continue as before and most likely additional new models will come out if JLR wants to achieve that ambitious annual sales target.

Source: thesundaytimes.co.uk

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Jaguar Land Rover believed to plan $6.8 billion cost cuts and make 1 million cars annually by 2020