Jaguar seeking €4.5bn in cost cuts by 2020 as Chinese sales fall

Jaguar Land Rover has launched an ambitious drive to cut £4.5 billion in costs by the end of the decade, underlining the steep challenge the British carmaker faces to offset declining sales in China and meet tougher emissions targets.

Under Indian ownership since 2008, JLR has blazed a trail of rapid growth, with turnover tripling and sales and employment doubling since 2010. But a second-quarter net loss unveiled by parent Tata Motors on Friday revealed a darkening picture – with three-month sales down 32 per cent in China for the Jaguar and Land Rover brands. The company has a freeze on hiring white-collar employees, say sources.

The results and austerity drive mark a stinging correction to the wave of optimism. JLR wants to release 50 new or updated products over the next five years and plans to open a new plant in Slovakia as part of an attempt by chief executive Ralf Speth to catch up with his former employer, BMW, and the other large German premium carmakers.– Copyright The Financial Times Limited 2015