Automaker Jaguar Land Rover sheds 25 percent production capacity

*Jaguar Land Rover discloses it has lowered its breakeven point to about 400,000 vehicles a year, from 600,000 just as it suspends plans to build a battery-powered replacement of the Jaguar XJ sedan

Isola Moses | ConsumerConnect

While calling off plans to build a battery-powered replacement of the Jaguar XJ sedan, Jaguar Land Rover has disclosed that it slash manufacturing capacity by 25 percent over five years and write off investment in products it has decided to scrap under new Chief Executive Officer Thierry Bollore.

The British carmaker will take a non-cash charge of about 1 billion pounds ($1.4 billion) in the quarter ending in March related to higher previous spending and projects it won’t complete, according to an investor presentation, reports Bloomberg.

The company recently noted that it was suspending plans to build a battery-powered replacement of the Jaguar XJ sedan.

The Tata Motors Limited-owned manufacturer’s new business plan under Bollore, 57, includes making the Jaguar marque all-electric within four years while giving the Land Rover sport utility vehicle brand more time to make the jump.

The carmaker Friday, February 26, 2021, said it had lowered its breakeven point to about 400,000 vehicles a year, from 600,000, according to report.

JLR’s pivot away from the internal combustion engine is the latest seismic shift in the auto industry driven by stricter emissions rules.

It was gathered that the company is poised to be a challenging one for the company, which has struggled to comply with pollution standards and was seeing a dip in demand from China even before the pandemic hit.

The carmaker will introduce six fully electric Land Rover variants in the next five years. By 2030, it expects all of its Jaguar models and 60 percent of Land Rovers sold to be zero-emissions vehicles.

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