Gaydon, UK, 15th February 2021.
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.
“Jaguar Land
Rover is unique in the global automotive industry. Designers of peerless
models, an unrivalled understanding of the future luxury needs of its customers,
emotionally rich brand equity, a spirit of Britishness and unrivalled access to
leading global players in technology and sustainability within the wider Tata
Group.
“We are
harnessing those ingredients today to reimagine the business, the two brands
and the customer experience of tomorrow. The Reimagine strategy allows us to
enhance and celebrate that uniqueness like never before. Together, we can
design an even more sustainable and positive impact on the world around us,” said Mr Bolloré.
Twodistinct modern luxury brands
with sustainability at the centre
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 pureelectric 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
pureelectric 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.
Quality and efficiency
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
evolvesits 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.
“We have so
many ingredients from within. It is a unique opportunity,” said Mr Bolloré. “Others have to rely solely on
external partnerships and compromise, but we have frictionless access that will
allow us to lean forward with confidence and at speed.”
Bringing all these ingredients
together, Jaguar Land Rover is on a path towards double-digit EBIT margins and
positive cashflow, 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.
Mr N Chandrasekaran, Chairman of
Tata Sons, Tata Motors and Jaguar Land Rover Automotive plc commented: “The
Reimagine strategy takes Jaguar Land Rover on a significant path of
acceleration in harmony with the vision and sustainability priorities of the
wider Tata Group. Together, we will help Jaguar realise its potential,
reinforce Land Rover’s timeless appeal and collectively become a symbol of a
truly responsible business for its customers, society and the planet.”
Mr Bolloré concluded: “As a
human-centred company, we can, and will, move much faster and with clear
purpose of not just reimagining modern luxury but
defining it for two distinct brands. Brands that present emotionally unique
designs, pieces of art if you like, but all with connected technologies and
responsible materials that collectively set new standards in ownership. We are
reimagining a new modern luxury by design.”