Luxury car manufacturer Jaguar Land Rover is aiming to be a net zero carbon business by 2039, but will “substantially reduce and rationalise” its non-manufacturing UK operations.
Chief executive Thierry Bolloré, who took over the role last year, announced the manufacturer’s new ‘Reimagine’ strategy this morning.
Jaguar will become an all-electric car brand from 2025, while over the next five years, Land Rover will bring in six pure electric variants.
All Jaguar and Land Rover nameplates are to be available in pure electric form by end of the decade, with the first all-electric Land Rover model to be on sale 2024.
Bolloré also revealed that the company has “entertained” studies looking at the potential of using hydrogen fuel in some form in the future – which could become “very important” to the group in the coming years.
The company said it was aiming for a “streamlined structure to deliver greater agility and promote an efficiency of focus”.
Its global manufacturing and assembly footprint will be “retained, rightsized, repurposed and reorganised”, with increased collaboration planned with parent company Tata Group to explore “potential synergies” on clean energy, connected services, data and software development.
While the chief executive said that the firm’s plants in Halewood, Merseyside, and Solihull, West Midlands, would adapt to accommodate the new electric vehicle plans, the future of its Castle Bromwich plant seemed less certain.
While it is not expected to close, Bolloré did not confirm what the factory would do in the future, but just that Jaguar would “explore plans to repurpose the plant”.
Jaguar Land Rover also said it wanted to move more teams to its Gaydon headquarters, which Bolloré said would “bring all these ingredients together… to become the heart of our business”.
The company claimed to be on a path towards a double-digit earnings margin and positive cash flow, with an ambition to achieve positive cash net-of-debt by 2025.
“We will become a more agile business, with a simplified manufacturing operation,” read a statement.
Bolloré commented: “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.”
At the end of January, the company’s third quarter trading updated showed that profit before tax of £439m was up £374m on the prior quarter and £121m year-on-year.
This reflected revenue of £6bn, up £1.6bn from the second quarter of 2020, with the business hailing cost performance and partial reversal of prior-period reserves.