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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.

Jaguar F-Type Rally Car First Ride | This cat likes gravel

SOUTH WALES, U.K. — The invitation is last-minute and somewhat vague. The location, an off-road test area in South Wales known as Walter's Arena, sounds more Land Rover than Jaguar. It's also in five hours, and only a passenger seat tease is on offer. But a Jaguar rally car? Color me curious. First impressions don't disappoint. Basking at the entrance is NUB 120, so-named after its license plate and considered the most famous Jaguar XK120 of all. Built in 1950, it took three consecutive overall wins on the insanely arduous Alpine Rally. Driven by Jaguar dealer (and Olympic skier) Ian Appleyard and navigated by his wife Pat Lyons, daughter of Jaguar founder Sir William Lyons, this car helped demonstrate the power and durability of the legendary XK engine in the toughest possible test. Carrying its original paint and a few battle scars, I could stop right here. But its presence is simply justification for what's lurking a little deeper in the forest. That being an F-Type rally car. Which is exactly as wild as it sounds. Based on a regular 2.0-liter F-Type Convertible, the project riffs on Jaguar's little-known rally heritage and pending MY20 updates to the F-Type range. The 16-inch rally wheels, gravel tires, custom fabricated roll cage and hood-mounted spots are not adornments destined for any production F-Type. That said, it's clearly been built to do more than sit on an auto show plinth. This initially seems like the sort of thing that'd be an after-hours project by Jaguar Land Rover's Special Vehicle Operations department, the same guys who cooked up the Project 7 F-Type and XE SV Project 8 sedan. But there's something about the Below Zero Ice Driving branding on the support truck that rings a bell. SVO supplied the graphics and items like the F-Type GT4 carbon fiber door cards, but it turns out the actual build was outsourced to a specialist outfit. Their expertise is turning sports cars into rally machines, this following the FIA's ongoing efforts to revive the sport's sideways, rear-wheel drive traditions. See the Toyota GT86 CS-R3 and initiatives like the R-GT Cup, the latter popular with privateers in converted 911 GT3s and inspiring Porsche's recent toe-in-the-water Cayman GT4 Clubsport rally car. Then it clicks — the crew are from Tuthill Porsche, a celebrated restoration and race shop between London and Birmingham with a huge presence in historic competition. They also have a sideline running Swedish ice driving experiences in old Porsches.

Automotive Grade Linux will be the backbone of your connected car

Creating a backend for a secure, reliable, and expandable infotainment system is costly and time consuming. The Linux Foundation, a non-profit organization, has set out to promote and advance the Linux operating system in commercial products. Automotive Grade Linux, or AGL, is a group within the Foundation that seeks to apply a Linux backend to a number of automotive applications in a variety of vehicles from various suppliers and manufacturers. AGL's goal is to create a common, unifying framework that allows developers and manufacturers to easily implement applications across platforms. Currently, the focus is on infotainment systems, but AGL has plans for instrument clusters, heads-up displays, and eventually active safety software. At CES, a display from Panasonic showed a completely digital and customizable dashboard that allows information and apps to be moved from the gauge cluster to the infotainment screen and back, all through the use of gesture and touch controls. Although the organization has been around for five years, it's really only been in the past three that the group has been working hand in hand with automakers and suppliers. The first two OEMs to participate, Toyota and Jaguar Land Rover, have since been joined by Mazda, Suzuki, Ford, and, as of this week, Daimler. The latter is important as until now most of AGL's partner's have been based in Japan or the US. Other partners include suppliers Denso, Renesas, Continental, Qualcomm, and Intel. AGL want's to supply roughly 80 percent of the backend, allowing partners to then finish and refine the Linux system for each individual application. Think of how the Android operating system is refined and customized for individual smartphones from Samsung, LG, and Motorola. While the final product looks different, developers can have an application that will work across all AGL systems. Because it is open source, anyone can use and develop for AGL. You can even go onto the group's website and download a copy right now. There is also a software development kit available that helps facilitate app creation on the platform. Vehicle development cycles take roughly five years, so there currently are no cars that run an AGL backbone available for consumers. AGL Executive Director Dan Cauchy says products should be hitting the market later this year, with even more coming in 2018. Right now, the industry is relatively fragmented when it comes to infotainment and related systems.