Tata Motors owned JLR comes up with cost cutting plan

Jaguar Land Rover owned by Tata Motors, has come up with an all new cost cutting plan to the tune of 4.5 billion pounds known as Leap 4.5. This plan will investigate every spending area at the luxury car manufacturer.


Jaguar Land Rover, owned by Tata Motors, has drafted its new cost cutting plan to the tune of 4.5 billion pounds with a view towards meeting the increasing cost of emissions and the slowdown in vital Chinese markets which is affecting the automobile industry greatly. This new project is called Leap 4.5 and will investigate every area of spending at the company. The research and development capital budget of 3 billion pounds a year will be excluded from this project.


JLR has been one of the biggest successes in Britain ever since Tata Motors bought it from Ford in the year 2008. The company earned a profit of 2.6 billion pounds in 2014 and makes approximately 5, 00, 000 vehicles annually with an army of 37, 000 employees. The company has so far spent about 11 billion pounds on a new line up of vehicles and also developed plants in India and China with another being developed in Brazil while its existing plants in Britain have also been revamped. The company has a target of building around one million vehicles by the year 2020.


However, China sales went down to 20, 149 cars representing a drop in market share to the tune of 1.9%. Additionally, the company also faced a 245 million pound charge on its 5, 800 vehicles that were damaged in the Tianjin explosion in August. Regulators are also piling on the pressure on JLR with a view towards cutting emissions or shelling out heavy fines. This has prompted this all new cost cutting strategy at the company.


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