Published on February 16th, 2021 | by Subhash Nair0
Jaguar Land Rover: Most Profitable Luxury Brand By 2030?
That’s what Jaguar Land Rover’s “Reimagine” plan says they want to be.
The car industry is going through something of a shakeup. In the United States, Tesla has sold more cars than Audi. In South Korea, Kia has transformed their brand entirely. And in the UK, we’re now learning that Jaguar Land Rover has a plan to get them through this decade.
The Reimagine plan covers a number of key points. We’ve summarised them below:
- 2 unique electric architectures for Jaguar and Land Rover
- Land Rover will use both the Modular Longitudinal Architecture (MLA) and an Electric Modular Architecture (EMA) in future models
- The Solihull plant will make the MLA and Jaguar’s future electric architecture
- 6 electric Land Rover variants, with the first arriving in 2024
- By 2030, 60% of Land Rover models will be electric vehicles
- By 2030, 100% of Jaguar models will be electric vehicles
- The flagship Jaguar XJ will not get a direct replacement
- By 2039, JLR will be carbon neutral
- Jaguar Land Rover will partake in hydrogen fuel cell adoption within a year
- In-house subscription programmes will be expanded to other markets
- JLR will restructure to be flatter and leaner
- JLR will achieve positive cash net-of-debt by 2025
- JLR will become the most profitable luxury manufacturers in the world by 2030
Here’s the full press release if you want to look through some of those points in more detail.
Jaguar Land Rover will reimagine the future of modern luxury by design through its two distinct, British brands.
Set against a canvas of true sustainability, Jaguar Land Rover will become a more agile creator of the world’s most desirable luxury vehicles and services for the most discerning of customers. A strategy that is designed to create a new benchmark in environmental, societal and community impact for a luxury business.
At the heart of its Reimagine plan will be the electrification of both Land Rover and Jaguar brands on separate architectures with two clear, unique personalities.
In a Land Rover, vehicle and driver are united by adventure. By breaking new ground, confronting new challenges and not being content with the expected, Land Rover truly helps people to go ‘Above and Beyond’. In the next five years, Land Rover will welcome six pure electric variants as it continues to be the world leader of luxury SUVs through its three families of Range Rover, Discovery and Defender. The first all-electric variant will arrive in 2024.
By the middle of the decade, Jaguar will have undergone a renaissance to emerge as a pure electric luxury brand with a dramatically beautiful new portfolio of emotionally engaging designs and pioneering next-generation technologies. Jaguar will exist to make life extraordinary by creating dramatically beautiful automotive experiences that leave its customers feeling unique and rewarded. Although the nameplate may be retained, the planned Jaguar XJ replacement will not form part of the line-up, as the brand looks to realise its unique potential.
Jaguar and Land Rover will offer pure electric power, nameplate by nameplate, by 2030. By this time, in addition to 100% of Jaguar sales, it is anticipated that around 60% of Land Rovers sold will be equipped with zero tailpipe powertrains.
Jaguar Land Rover’s aim is to achieve net zero carbon emissions across its supply chain, products and operations by 2039. As part of this ambition, the company is also preparing for the expected adoption of clean fuel-cell power in line with a maturing of the hydrogen economy. Development is already underway with prototypes arriving on UK roads within the next 12 months as part of the long-term investment programme.
Sustainability that delivers a new benchmark in environmental and societal impact for the luxury sector is fundamental to the success of Reimagine. A new centralised team will be empowered to build on and accelerate pioneering innovations in materiality, engineering, manufacturing, services and circular economy investments.
Annual commitments of circa £2.5bn will include investments in electrification technologies and the development of connected services to enhance the journey and experiences of customers, alongside data-centric technologies that will further improve their ownership ecosystem.
Proven services like the flexible PIVOTAL subscription model (which has grown 750% during the fiscal year), born out of Jaguar Land Rover’s incubator and investor arm, InMotion, will now be rolled out to other markets following a successful launch in the UK.
Reimagine will see Jaguar Land Rover establish new benchmark standards in quality and efficiency for the luxury sector by rightsizing, repurposing and reorganising.
Central to that journey, and in order to establish different personalities for the two brands, is the new architecture strategy.
Land Rover will use the forthcoming flex Modular Longitudinal Architecture (MLA). It will deliver electrified internal combustion engines (ICE) and full electric variants as the company evolves its product line-up in the future. In addition, Land Rover will also use pure electric biased Electric Modular Architecture (EMA) which will also support advanced electrified ICE.
Future Jaguar models will be built exclusively on a pure electric architecture.
Reimagine is designed to deliver simplification too. By consolidating the number of platforms and models being produced per plant, the company will be able to establish new benchmark standards in efficient scale and quality for the luxury sector. Such an approach will help rationalise sourcing and accelerate investments in local circular economy supply chains.
From a core manufacturing perspective that means Jaguar Land Rover will retain its plant and assembly facilities in the home UK market and around the world. As well as being the manufacturer of the MLA architecture, Solihull, West Midlands will also be the home to the future advanced Jaguar pure electric platform.
Key partners including Trade Unions, retailers and those in the supply chain will continue to play a vital part of the extended new Jaguar Land Rover ecosystem and its journey towards reimagining the future of modern luxury.
REFOCUS TO A MORE AGILE OPERATION
As evidenced with the latest financial results, Jaguar Land Rover has a strong foundation on which to build a sustainable and resilient business for its customers and their communities, partners, employees, shareholders and the environment.
Driving this transformation is the recently launched Refocus programme, by consolidating existing initiatives like Charge+ with new cross-functional activities.
Reimagine will see Jaguar Land Rover right-size, repurpose and reorganise into a more agile operation. The creation of a flatter structure is designed to empower employees to create and deliver at speed and with clear purpose. To accelerate this efficiency of focus, the company will substantially reduce and rationalise its non-manufacturing infrastructure in the UK. Gaydon will become the symbol of this effort – the ‘reactor’ of the business – with the Executive Team and other management functions moving into the one location to aid frictionless cooperation and agile decision-making.
LEAPFROG TO LEADERSHIP WITH TATA GROUP
In order to realise its vision of modern luxury mobility with confidence, the company will curate closer collaboration and knowledge-sharing with Tata Group companies to enhance sustainability and reduce emissions as well as sharing best practice in next-generation technology, data and software development leadership. Jaguar Land Rover has been a wholly-owned subsidiary of Tata Motors, in which Tata Sons is the largest shareholder, since 2008.
Bringing all these ingredients together, Jaguar Land Rover is on a path towards double-digit EBIT margins and positive cash flow, with an ambition to achieve positive cash net-of-debt by 2025.
Ultimately, Jaguar Land Rover aims to be one of the most profitable luxury manufacturers in the world.