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JLR Aims To Cut Costs £4.5 Billion by 2020
Jaguar Land Rover Ltd. intends to reduce its costs by £4.5 billion ($6.8 billion) in five years, says the U.K.’s Sunday Times.
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Jaguar Land Rover Ltd. intends to reduce its costs by £4.5 billion ($6.8 billion) in five years, says the U.K.’s Sunday Times.
The plan, dubbed Leap 4.5, involves limiting new hires, streamlining the company’s supply chain and increasing platform sharing for future models. The report says the scheme does not involve any layoffs.
The Sunday Times says the plan also sets a new global sales target of 1 million vehicles by 2020. JLR previously said it was targeting sales of 828,500 units by then.
The cost-cutting initiative will enable JRL to reduce its annual capital spending on research and new factories by £3 billion ($4.5 billion), according to the newspaper.
It isn’t clear whether Leap 4.5 will affect the company’s plans to open an assembly operation in Brazil next year and build a factory plant in Nitra, Slovakia. JLR signed a letter of intent in August for the latter project and indicated it would make a final decision by the end of 2015.
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