Across the wider reinvention of the JLR business, the biggest hurdle for the company to overcome is probably achieving its ambition to take much larger shares of the two most profitable market segments around the globe.
Of note is JLR’s intention to increase its EU share of the most profitable market segment (represented by the Range Rover luxury SUV) from 14% to 27% by 2026.
In the next most profitable sector, in which it fields the Velar, JLR is looking to boost its EU market share from 11% to 26% in 2026 and from 36% of the UK market to a huge 58%. It’s an aim that really would take the fight to BMW and Mercedes, and one that could represent JLR’s acknowledgement of Volvo’s success in driving upmarket.
The other big industrial move is for JLR to reduce its production break-even point. According to internal figures, JLR had a cash burn of £910 million in 2018, when investment in the MLA platform and new Land Rover Defender was peaking at £5 billion. It needed to make 575,000 vehicles to break even but managed only 508,000.
However, JLR’s break-even point is said to be below 450,000 units this year and will further improve as Castle Bromwich goes offline and is repurposed, possibly for battery-related manufacture.
It is expected the launch of the new Range Rover and Range Rover Sport over the next 18 months will massively boost profits to help finance the engineering of the EMA architecture.
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@ britfan
I quite understand your stance and bias given your nom de plume.
But a friend of mine living just a short way from me, had her Discovery Sport ingest its turbo on the motorway at 20 months old and 37k miles. She was very lucky that traffic all around her avoided her car which gave no warning before launching itself. She could have been killed!
It took 3 months to get the car back with its new engine. Land Rover of course supplied a replacement for the 3 months, but even then it took over a week because they were all our of courtesy cars at the Dealer and JLR themselves....seems there was a ton of demand!!!!
So whilst you may have had a good example, this is by no means a signal that LR woes are behind them.
Also, I dont know what part of the country you live in, but I spend quite a lot of time on the motorway, and have hardly ever seen German product broken down on the hard shoulder.....mostlt Land Rover and Fords in the 0-6 year old stakes being loaded onto low loaders.
Increasing market share is surely every manufacturers intention. Although obviously not all can do this, especially so as ever more vehicles and variants become available in the SUV & Luxury SUV segments. The numbers stated above are a pipedream, increasing market segments by 15% in each segment? That is ludicrous optimism. HOW they intend to do this would be the essence of this stated aim, without that its just picking numbers out the air, may as well claim 90 or even 100% over each segment.
Turn their weaknesses in to their successes. Keep working on where they're weak, that's how you build up your brand by bettering yourself.
And I read on another page here that they're cancelling the F-Pace. Jaguar's best seller. Seems their CEO hasn't got a clue.