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Jaguar Land Rover undergoes $3.2 billion turnaround plan as sales slump

MUMBAI — India's Tata Motors on Wednesday announced a turnaround plan for its luxury car unit Jaguar Land Rover, which has been hit hard by trade tensions between China and the U.S., low demand for diesel cars in Europe and worries over Brexit. Under "Project Charge," Tata Motors said it plans to cut costs and improve cash flows at Jaguar Land Rover (JLR) by 2.5 billion pounds ($3.2 billion) over 18 months. JLR also plans to launch several new vehicles, including the Jaguar I-Pace and the new Range Rover Defender over the next few years and will offer a hybrid or full-electric version of all its models by 2020. "Together with our ongoing product offensive and calibrated investment plans, these efforts will lay the foundations for long-term sustainable growth," JLR CEO Ralf Speth said after Tata Motors reported a quarterly loss. JLR has trimmed its pre-tax profit expectations for the current fiscal year ending March 31, 2019, and expects to break even, Speth said, versus an earlier target of profit growth. As part of the turnaround plan, JLR will first focus on cash-saving "quick wins" like reducing non-product investments and speeding up asset sales, Tata Motors said in an investor presentation. In the near term it will improve efficiency in areas including purchasing and material cost, manufacturing, logistics and people, and will focus on strategic and non-core asset sales. JLR has already reduced the number of production days at its UK plants in Castle Bromwich and Solihull. The company said in its presentation it has saved 300 million pounds since it initiated the turnaround plan six weeks ago and is working on 500 ideas for the future. Tata Motors reported a loss of 10.49 billion rupees ($141.9 million) for the July-September quarter, compared with a profit of 24.83 billion rupees in the year-ago period. That was worse than the estimate of a loss of 2.40 billion rupees, according to Refinitiv data. JLR reported a loss of 101 million pounds during the quarter and its margin on earnings before interest, tax, depreciation and amortization (EBITDA) fell 130 basis points to 9.9 percent. Retail sales of its Jaguar sedans and Land Rover sport utility vehicles (SUVs) fell 13.2 percent to about 130,000 units, hurt particularly by tariff changes in China and escalating trade tensions. Demand in China remained muted even after the country cut import tariffs for cars and car parts to 15 percent for most vehicles from 25 percent from July.

Who picks car colors and materials? Designers like Hannah Custance

As automotive journalists, we're often asked "how did you get that job?" People usually didn't even know you could do such a thing. In this 7 Questions series, we're highlighting other jobs in the automotive industry that you might not have heard about before. What do they do, how'd they get to do it and other questions about their particular corner of the car world. Slowly but surely, the automotive landscape is becoming more colorful. Look beyond the unrelentingly conservative palette of white, black and gray most buyers opt for and you'll see the increased use of exterior trim types beyond the usual chrome. There's gloss black, of course, but also other metallic finishes like gold or copper. Those can be found inside, too, where there's also an increase in colorful leathers and trims, innovative fabrics, new wood types and finishes, and greater creativity in general. So where is this change coming from? The answer is designers like Hannah Custance, the color and materials design manager for Jaguar Land Rover. Her team's latest effort is also its magnum opus, the 2022 Range Rover. Although saddled with the expectations that comes with one of the automotive industry's classic nameplates, the all-new Range Rover is also a celebration of cutting edge manufacturing and fashion-forward materials selection. We sat down with Hannah at the L.A. Auto Show to find out more about color and materials designers, how she ended up in the industry, and advice she might have for young designers out there. It has been condensed for brevity. Autoblog: What does a color and materials design manager to do?Hannah Custance: I basically look after a team of designers who design finishes for every A surface on the car. So, that could be exterior finishes. It could be interior trim materials, soft materials, hard materials, chromes, metals, woods, ceramic – that's one of the new ones – anything you can kind of touch and see is color material design. Autoblog: How early in the design process does your team become involved.Hannah: Right at the very start. In fact, we look at materials that don't have a product assigned to them or a car assigned to them. So, it takes actually a very long time for us to get materials approved and fully validated. We have to find suppliers that are willing to work in automotive and our test standards are incredibly high, some of the highest in the industry.

Jaguar CEO says people just don't want EVs right now

"Customers are not impressed with it currently." These are the words of one Ralf Speth, CEO of Jaguar Land Rover, spoke at the Automotive News Europe Congress in Birmingham, England. The "it" Speth is referring to is battery technology, which he characterized as "too heavy, too expensive," and with power density that's "too low." That all could go some way towards explaining why the British automaker has yet to bring an electric vehicle to market, why it killed the C-X75 hybrid-turbine supercar project, and why it only recently started offering hybrid versions of its Range Rover models (and has yet to offer them in the United States). That doesn't mean the company won't pursue electric propulsion in the future, though. According to Automotive News Europe, Speth forecasts that "the next generation of batteries will be higher density, lower weight and the cost will come down." What he didn't say, exactly, is when he expects that next generation of battery tech to come around – or when JLR will start to more closely embrace electric propulsion. In the meantime, Jaguar Land Rover will continue investing in research and development. Since Tata acquired the brands from Ford seven years ago, JLR has quadrupled its R&D budget and doubled the number of engineers on staff. Related Video: