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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.

2020 Jaguar XE updated inside and out, diesel engine dropped

For the 2020 Jaguar XE sports sedan, less is more, at least in terms of powertrain offerings and trim levels. But the new, slimmer lineup adopts additional tech features, and the model also sees design tweaks inside and out. The diesel engine and the 3.0-liter V6 have been axed. The 247-horsepower 2.0-liter turbocharged Ingenium inline-four is the base engine. It's mated to an eight-speed automatic transmission and can be had with rear-wheel drive or all-wheel drive. This base engine's new model designation is P250, versus 25t previously. The step-up engine is the 296-hp version of the Ingenium 2.0-liter. Cars so equipped wear a new P300 badge, in place of the previous 30t. All-wheel drive is now standard with the 296-hp engine, and Jaguar claims a zero-to-60-mph time of 5.4 seconds for this powertrain. The exterior design tweaks include new bumpers front and rear, a reshaped rear valence, as well as new LED headlights and taillights. A wider grille with lattice mesh is supposed to draw the XE closer visually to the I-Pace EV. The previous thicket of trim levels — Premium, Prestige, R-Sport, S, Portfolio, and Landmark — have been pruned to just two: S and R-Dynamic S. Newly available is Jaguar Land Rover's InControl Touch Pro Duo infotainment system, which uses a second screen for climate control, flanked by two large knobs that can operate different functions (temperature, fan speed, and seat heating/cooling). The new rearview camera mirror eliminates blind spots, and wireless device charging has been added to the center console. Jaguar also has ditched the rotary shifter in favor of pistol-type shifter found in the F-Type and elsewhere, while surrounding it with a variety of controls, including a flipper switch to toggle among the car's different drive modes. A beefier steering wheel includes capacitive-touch switches. Newly designed seats, with standard leather, are claimed to be more comfortable, while redesigned door panels incorporate wider, softer armrests as well as increased storage capability. Base pricing climbs from $37,990 for the old rear-wheel-drive 20t to $40,895 (including destination) for the new P250. The AWD P250 is $42,894, while the P300 is $47,290. The 2020 Jaguar XE is on sale now. Related Video:

Jaguar XJ could move to all-electric platform late this year

The Jaguar XJ is getting a little long in the tooth. The current generation of Jaguar's flagship sedan debuted back in 2009, making it one of the oldest vehicles still on the market. This week, Autocar reported that a new XJ could debut late this year and would move to an all-electric platform. That would place the XJ straight against cars like the Tesla Model S and upcoming Porsche Mission E, presumably sharing parts with the upcoming I-Pace electric crossover. While a couple of refreshes have kept the Jaguar competitive, the Mercedes-Benz S-Class and BMW 7 Series and Audi A8 have gone through full redesigns since the XJ debuted. (Two for the Audi). Compared to the Germans, the Jaguar looks and feels dated, especially when it comes to technology, active safety and alternative powertrains. In the U.S., the XJ is only available with either a supercharged gasoline V6 or V8. The competition from Germany, Japan and the U.S. all offer some form of electrification. Moving to an all-electric powertrain would be a huge shift for Jaguar and is sure to spark some debate among enthusiasts. The British automaker has previously stated it plans to electrify all new vehicles after 2020. Look for electrified variants of current models to be available, too. The new XJ is rumored to be co-developed with a new model called the Road Rover, a sort of high-riding sedan or wagon in the vein of the Audi allroad or Volvo V90 Cross Country. Like the XJ, the Road Rover would use a battery electric powertrain. Look for more news on both models later this year. Related Video: