JLR leans on US amid China slump, Brexit turmoil

Bloomberg | Updated on April 24, 2019 Published on April 24, 2019

JLRs top executive in the US is aiming for a repeat performance this year

Jaguar Land Rover (JLR) is facing stiff headwinds in the United Kingdom (UK) and in China, the worlds largest car market, but the storied British automaker sees the United States (US) as a relative oasis.

Plummeting China sales, Brexit tremors and tightening European emissions rules forced JLR parent Tata Motors Ltd to take a record $3.9 billion write-down last year. But while global deliveries fell 4.6 percent, the premium automakers 2018 sales in the US rose 7.3 per cent to a record of almost 123,000 vehicles.

JLRs top executive in the US is aiming for a repeat performance this year.

If we can keep our volumes around where we were last year, Id be more than happy, Joe Eberhardt, head of the company’s North America business, said in an interview at the New York auto show last week. We focus on the things we can control.

The US is JLRs single biggest market, and its betting on continued demand for SUVs like the compact E-Pace and redesigned Range Rover Evoque, even as industrywide vehicle sales are expected to dip. The automaker also is counting on a new version of the Land Rover Defender, the boxy classic that ferried British soldiers during the Korean War, to gin up sales when it arrives on US shores in 2020.

There is always room for further growth and the growth will have to come from new product, Eberhardt said.

Maintaining that momentum in the US is critical as the company struggles to adjust to falling sales elsewhere. In January, JLR announced plans to slash 4,500 jobs worldwide -- roughly 10 per cent of its workforce -- as part of a 2.5 billion-pound ($3.2 billion) push to reduce costs and boost cash flow through 2020. Eberhardt said North America has done its part to contribute to cost savings, without elaborating.

Tata is said to be exploring strategic options for JLR, including a potential stake sale in the struggling luxury carmaker, Bloomberg reported in March, citing people familiar with the matter. The automaker needs to raise $1 billion in 14 months to replace maturing bonds and is also burning cash on an investment program for electric cars.

Published on April 24, 2019
This article is closed for comments.
Please Email the Editor