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Jaguar Land Rover to cut $6.8 billion in costs

Jaguar Land Rover reduce costs by $6.8 billion and will push annual production volume to 1 million vehicles under a secret project called Leap 4.5, according to Reuters. The British automaker wants to achieve these ambitious goals by the end of the decade to compensate for the changing market in China and to counteract the price of meeting stricter emissions standards around the world. Leap 4.5 won't mean firing workers or cutting the automaker's $4.5 billion annual research budget. JLR will instead find savings by underpinning more models with modular platforms and by adjusting its supply chain. Future factories like the one in Brazil and the proposed plant in Slovakia also won't be affected by the new strategy. Globally, JLR continues to grow, and deliveries are up two percent through October 2015 to 390,965 vehicles. Business just last month was up 24 percent year-over-year to 41,553 units. However, the auto market's downturn in China has taken a bite out the automaker's success because volume dropped there 32 percent in the third quarter, Reuters reported. A global volume of 1 million vehicles will mean more than doubling 2014's 462,678 deliveries, but JLR has made significant investments to boost production recently. In addition to the future factories, it opened its first plant in China last year and an engine assembly site in the UK. The company also signed a deal with Magna Steyr in 2015 to build an upcoming model in Austria. Related Video:

2013 Jaguar XJ AWD

Even though this year's winter has gotten off to an abnormally slow start for most of North America, Jaguar has shown the world it means business by launching its all-new Instinctive All Wheel Drive system in Montreal, Canada. Designed primarily for consumers in the Northern US and Canada, Jaguar put us on the same snowy, slushy and icy roads that many of its buyers will have to deal with. Rather than making declawed versions of the XJ and XF, Jag says this system enhances the performance abilities of its sedans when desired while still making them as fun to drive as their rear-wheel-drive counterparts. We had a chance to test out both the XF AWD and XJ AWD, but we spent most of our time behind the wheel of the flagship XJ, driving it on the open roads as well as a few closed courses.
Considering the lengthy and convoluted history of the Jaguar brand - including a stint as a member of Ford's defunct Premier Automotive Group alongside Volvo and Aston Martin - it is rather surprising that the automaker is just now getting around to introducing an all-wheel-drive system intended for widespread use, but the new Instinctive AWD will finally allow the XF, XJ and other future products to better compete against the likes of Mercedes-Benz 4Matic, BMW xDrive and Audi Quattro. In the XJ, Jaguar expects the AWD models to account for around 40 percent of the product mix nationwide and a little bit more (50 percent) for the XF, but in the northern states, it expects around 80 percent of XF sales to be AWD variants.
Instinctive AWD is rear-biased and operates as full rear-wheel drive in good weather, but when the road conditions turn slick, the system can split engine power 50:50 between front and rear axles using a center transfer case.

BMW and Jaguar Land Rover to jointly develop electric car tech

FRANKFURT – BMW and Jaguar Land Rover on Wednesday said they will jointly develop electric motors, transmissions and power electronics, unveiling yet another industry alliance designed to lower the costs of developing electric cars. Both carmakers are under pressure to roll out zero-emission vehicles to meet stringent anti-pollution rules, but have struggled to maintain profit margins faced with the rising costs of making electric, connected and autonomous cars. "Together, we have the opportunity to cater more effectively for customer needs by shortening development time and bringing vehicles and state-of-the-art technologies more rapidly to market," said BMW board member Klaus Froehlich. BMW and Jaguar Land Rover said they will save costs through shared development, production planning and joint purchasing of electric car components. Both companies will produce electric drivetrains in their own manufacturing facilities, BMW said. The BMW Jaguar Land Rover pact comes as rivals FiatChrysler and Renault explore a $35 billion tie-up of the Italian-American and French carmaking groups. Nick Rogers, Jaguar Land Rover's engineering director said, "We've proven we can build world beating electric cars but now we need to scale the technology to support the next generation of Jaguar and Land Rover products." BMW was in talks with rival Daimler about developing electric car components but was also in discussions with Jaguar Land Rover, a company it once owned, to explore an alliance on engines. BMW already has a deal to supply an 8 cylinder engine to Jaguar Land Rover. Carmakers are increasingly open to sharing electric car parts because the technology is expensive and because customers no longer buy a car based on what engine a vehicle has. "Carmakers are much less precious about sharing electric car technology because it is much harder to create product differentiation with electric car tech. They all accelerate fast, and everybody can do quality and ride and handling," according to Carl-Peter Forster a former chief executive of Tata Motors and a former BMW executive. Jaguar Land Rover is still run by former BMW managers, including Ralf Speth the company's chief executive who spent 20 years at BMW prior to joining JLR, and Wolfgang Ziebart, the engineer who oversaw Jaguar's I-Pace electric car program, who is a former head of research and development at BMW.