Jaguar Land Rover | Committed to full Electrification by 2030
Thierry Bolloré, CEO of the largest automaker in the United Kingdom, Jaguar Land Rover, presented a fairly comprehensive program that will include distinctive design, modern luxury, along with electrification as key aspects. The British brand wants to reorient itself to the latest global strategy, “Reimagine.“
Part of the strategy would be that, by as early as 2025, Jaguar would become an all-electric luxury car maker. Jaguar Land Rover intends to start preparing for a sustainable future and reposition itself quite solidly as a flexible and efficient provider of sought-after luxury vehicles and outstanding services worldwide. This move is for those customers who also are particularly demanding, the manufacturer has said in its press statement.
Jaguar Land Rover also seeks to achieve new standards for a luxury marque with regard to the environmental impact and community with the “Reimagine” strategy.
“Jaguar Land Rover is unique in the global automotive industry: Here, unrivaled model designers with a deep understanding of future customer expectations of luxury meet strong emotional brand values, a British spirit throughout the Tata Group. , direct access to players in technology and sustainability.
We are now using these prerequisites to redefine our business, with the two brands along with the customer experience of tomorrow. The Reimagine strategy allows us to emphasize and strengthen our uniqueness like never before. Together we can achieve a more sustainable and positive impact on the world around us”. Thierry Booloré, CEO of Jaguar Land Rover
The perpetual electrification of both the brands, Jaguar and Land Rover, into completely different architectures with independent and distinctive personalities is the key component of the’ Reimagine’ strategy.
With a total of six fully-electric vehicles, the Luxury SUV maker, Land Rover is anticipated to grow in the coming five years. Land Rover seeks to strengthen its role as one of the leading manufacturers of high-end Luxury SUVs that also have exceptional off-road capabilities true to its pedigree.
It intends to reach this target with its three distinctive Range Rover, Discovery, and Defender sub-brands. By 2024, the very first fully electric version is expected to hit the market.
Jaguar, on the other hand, should experience a revolution: As a fully electric luxury brand with a new exciting portfolio that, as the company says, would integrate an emotionally attractive design and technological innovations.
A model under its Jaguar XJ model name could also be included in the upcoming lineup. However, the successor model of the XJ currently planned is not part of this group of vehicles.
Jaguar Land Rover to become completely Carbon Neutral by 2039 :
In addition, by 2039, the company seeks to become fully carbon-free with all of its products, locations, and its supply chain. The expansion of drives that will use clean hydrogen is also planned. Initiatives are already underway, endorsed by a long-term investment program: over the coming year, prototype fuel cell vehicles will also be launched for testing on the roads of Britain.
With the accomplishment of the “Reimagine” strategy, the sustainability factor plays a critical role: Jaguar Land Rover seeks to achieve new standards for environmental as well as social responsibility within the luxury segment.
A newly formed core team at the headquarters of the company intends to enhance and enforce pioneering innovative ideas in the domains of technology, materials management, service, recycling management and manufacturing.
Jaguar Land Rover intends to spend approximately £ 2.5bn (or EUR 2.8bn) yearly in the expansion of electrification and network-based services, which include data-centric technologies to significantly improve vehicle use. The automaker also intends to promote creative business strategies.
For instance, the Pivotal subscription model is common in Britain: it posted growth of nearly 750 percent in the financial year. Pivotal had been developed together along with InMotion, Jaguar Land Rover’s subsidiary, and investment arm; Pivotal will also now be introduced in markets outside the United Kingdom.
Improved Efficiency along with Superior Quality Standards :
Jaguar Land Rover would want to reposition, realign and reorganize itself with “Reimagine”. In terms of efficiency and quality, the company wants to be the next new benchmark in the luxury segment. The introduction of new and clearly outlined architectures that strives to underline and unify the independent characters is at the very heart of this strategic plan.
For the future growth of its models, Land Rover will be using the all-new flexible modular longitudinal architecture or (MLA). This would allow the combination to function along with both the fully electric drives and ICE power trains (Internal Combustion Engines).
Thus, the EMA (Electric Modular Architecture) modular electrical architecture is congruent with both electric drive trains and combustion engines. Jaguar models will only be using EMA or electrical architecture in the future.
“Reimagine” must continue to serve Simplification and Clarity :
It will consolidate a number of platforms and models at the individual plants which roll off the production line. In the luxury sector, these British brands would like to set up new standards in scalability, efficiency as well as quality. The primary objective of this approach would be to greatly simplify sourcing and accelerate capital expenditure in local distribution networks.
On the manufacturing side, this would mean that it will preserve all facilities in the United Kingdom and also globally. The West Midlands, Solihull plant, is planned to become the home of the MLA architecture and the highly developed Jaguar all-electric platform.
For Jaguar Land Rover, important partners, like trade unions, suppliers, auto dealers also play an integral role in redefining modern luxury. Their relevance should continue to grow within the ecosystem of the organization.
Jaguar Land Rover’s agility is intended to increase with “Refocus” :
The recently introduced “Refocus” program is the key driver behind this change. It comprises, on the one hand, of innovative cross-functional tasks and, on the other, of measures such as ‘Charge +,’ which, by late 2021, are anticipated to produce savings of nearly 6 billion sterling pounds (around 6.8 billion euros).
The strategic plan “Reimagine” also will also involve, making the business more nimble. Flatter structures should allow employees to work and make decisions more quickly and in a much more goal-oriented way.
To accelerate this process, beyond production, Jaguar Land Rover aims to optimize & streamline its infrastructure in the United kingdom. The new headquarters would become the Technology and Development Centre in Gaydon. To allow for smooth collaboration and agile decision-making, the board of directors, as well as other important managerial activities, are brought together.
Path to the top along with the TATA Group :
So that the vision of modern luxury mobility can become a reality, Jaguar Land Rover is planning an even more intensive collaboration and in-depth knowledge transfer with companies in the Tata Group, the automaker’s parent company.
The objective is to focus more and more on lower emissions and sustainability as well as to utilize the principle of best practice in the development of new future technologies, software, and data. Since 2008, Jaguar Land Rover has been a fully-owned subsidiary of India’s Tata Motors, whose biggest shareholder is Tata Sons.
“We have all the prerequisites for success within our company: This is a unique opportunity. Others have to rely on external partnerships or compromises. We, on the other hand, have direct access that allows us to approach the future quickly and with confidence.”- Thierry Bolloré, CEO of Jaguar Land Rover.
Jaguar Land Rover is now on the path to achieve positive cash flow and double-digit EBIT margins. Keeping this in mind – the company is aiming for net positive debt levels by 2025. Jaguar Land Rover would want to be one of the most financially viable luxury automakers in the world in the longer run.