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Jaguar-Land Rover rules out downsizing into new segments

Jaguar-Land Rover (JLR) will continue expanding its portfolio of models during the 2020s, but the group confirmed it won't chase volume by branching out into smaller segments like its German rivals. The two brands will instead seek partnerships to generate economies of scale. "We should not and will not drive down into segments just to get economies of scale," said Felix Brautigam, Jaguar-Land Rover's chief commercial officer, in an interview with Autocar. He added the second-generation Range Rover Evoque (pictured) released in 2018 is already a relatively small car. It stretches 172 inches from bumper to bumper and 75 inches from side to side, so it's approximately 4 inches longer and 5 inches wider than the eighth-generation Volkswagen Golf. It's about 8 inches taller than the German hatchback, however. While that's small by luxury car standards, Mercedes-Benz and BMW respectively went smaller with their Smart and Mini brands. Audi doesn't have an entry-level sub-brand, but it doesn't need to because it's part of the gigantic Volkswagen Group. Japanese luxury firms like Lexus and Infiniti are also part of bigger companies. Brautigam's comments bury numerous rumors. They confirm Jaguar won't take on the Mercedes-Benz A-Class, the Audi A3, and the BMW 1 Series with a model positioned below the XE, which competes against the C-Class, the A4, and the 3 Series, respectively. They also douse cold water on the born-again Freelander (which ultimately morphed into the LR2 in America), which Land Rover was allegedly developing to slot directly below the aforementioned Evoque. Ironically, JLR might soon have access to platforms capable of underpinning smaller vehicles. Parent company Tata Motors is actively looking for an outside company to link arms with the British brands, according to a separate report. Officials reportedly approached BMW -- which used to own Land Rover, and announced a joint-venture with the group in 2019 -- and Geely, the Chinese giant whose portfolio of brands includes Volvo, Polestar, Lotus, Proton, London Taxi Company, Terrafugia, and half of Smart, plus a sizeable, nearly-10% stake in Mercedes-Benz parent company Daimler. Geely told Bloomberg it hasn't heard from Tata or JLR. BMW and Tata remained silent. While a partnership with someone looks likely considering the significant hurdles faced by JLR, its parent company has categorically ruled out selling the duo it purchased from Ford for $2.3 billion in 2008.

Tata to shed 1,100 Jaguar Land Rover jobs after coronavirus hits earnings

BENGALURU — India's Tata Motors Ltd expects to shed about 1,100 temporary jobs at Jaguar Land Rover after it raised the cost-cutting target at its luxury unit by 1 billion pounds ($1.26 billion) to ride out the disruptions caused by the coronavirus outbreak. Tata Motors expects to save 5 billion pounds in costs by March 2021 at its Jaguar Land Rover (JLR) unit, the Indian automaker's Chief Financial Officer PB Balaji said on Monday, adding 3.5 billion pounds of the savings had already been achieved. It will also reduce capital expenditure at JLR to 2.5 billion pounds for the current fiscal year, from the more than 3 billion pounds it has spent annually in previous years. "Conserving cash and prioritizing capital expenditure, and targeting investment spending to the right areas is our focus," Balaji told reporters, after the company posted a fourth quarter loss. We anticipate that up to 1,100 agency employees will be affected, a JLR spokeswoman said in a separate statement. Tata Motors is reviewing all its businesses and would consider exiting those that do not add strategic value, as part of a broader effort to save 60 billion rupees ($789 million) in its domestic business in the fiscal year to 2021. The automaker on Monday posted a consolidated fourth quarter net loss of 98.94 billion rupees, as coronavirus lockdowns across its markets ravaged sales, including at JLR. Total revenue from operations fell 27.7% to 624.93 billion rupees in the quarter, which ended March 31. JLR, which contributes the bulk of Tata Motors' revenues, reported a pre-tax loss of 501 million pounds for the period after it took a hit of 800 million pounds because of the novel coronavirus, Balaji said. He said there were signs sales were recovering in China, one of JLR's biggest markets, as well as in the United States and in Europe, with strong orders for Land Rover's sport-utility vehicle Defender and Range Rover's Evoque. JLR's boss Ralf Speth, who has led the company since 2010, will step down from his role at the end of his contract term in September. ($1 = 76.0446 Indian rupees) ($1 = 0.7954 pounds) (Reporting by Chandini Monnappa in Bengaluru and Aditi Shah in New Delhi; Editing by Shounak Dasgupta and Sriraj Kalluvila)

Ex-Jaguar design boss Ian Callum starts his own design firm

A month ago, Ian Callum stepped down from his position as Jaguar's director of design. In a 20-year career with the English sports car maker, Callum's pen has traced the lines of everything from the original XK, the XJ, the F-Type, I-Pace, and more. Before that, he made use of employ at Aston Martin by contributing to the original DB7, the DB9, the previous Vantage, and the first Vanquish. After a career in service to OEMs that's been brilliant enough to earn him a CBE, for Commander of the Most Excellent Order of the British Empire, Callum has stepped up to take the reins at his eponymous design firm, called "Callum." Established with four fellow ex-Jaguar executives, Callum will design and engineer bespoke and limited-edition creations in the worlds of art, audio, automotive, fashion, lifestyle, and motorsports. The other trio of founding members are program director David Fairborn, engineering director Adam Donfrancesco, and commercial director Tom Bird. Fairbarn was the head of bespoke and special commissions at Jaguar Land Rover, where he helped bring the Lightweight E-Type to life. Donfrancesco left his role as engineering manager for JLR 's bespoke and special commissions; before that, he developed road and race cars like the Aston Martin GT8 and GT12. Bird, after stints at PWC and Barclays, had been commercial manager at JLR, where he shepherded the C-X75 concept into the James Bond movie Spectre. Callum said of the venture, "I wanted to get back to the essence of creativity; the challenge of producing something wonderful and personal. To design the alternative has always been my mantra, but always the beautiful alternative and something to enjoy." The man's still contracted to Jaguar as a brand ambassador, but at 64 years old, he feels "I've got maybe 15 years of design aptitude left, and I want to make the most of it." With 18 employees and based in a 20,000-square-foot facility in Warwick, the firm is ready right now with the engineering and manufacturing machinery to create products in-house. Even with the company's wide remit, we expect to see Callum take a stand in the automotive space. He admitted that he'd "like to take some of the cars I've designed and maybe redo them a little bit," but the team will always consider the entire vehicle, looking to upgrade dynamics and handling, too. We're told the first project will be announced soon.