Jaguar Land Rover has, according to sources, initiated a series of programs designed to cut costs amounting to 4.5 billion pounds, ($6.8 billion) and to build a total of 1 million cars per year by 2020.
The project, called Leap 4.5, will allow ramped up production in conjunction with cost savings by building more vehicles on similar, modular chassis and platforms. Also involved may be changes to manufacturing supply chains and a slowdown in hiring. As of now there are no plans for layoffs or other staff downsizing.
Leap 4.5 is intended to offset waning sales in China as well as increases in expenditures related to satisfying ever-increasing environmental requirements in various markets. So far though, the cuts are not scheduled to affect any of Land Rover’s 3 billion pound per year research and development budget, nor will they affect plans to build on or add to manufacturing sites and other facilities.
Sales in China, one of Land Rover’s fastest growing markets, declined over 30 percent in the 3rd quarter of 2015, due to an overall economic slowdown, weakened stock market, and devaluation of the Chinese currency
JLR parent company, Tata Motors, could not be reached for comment.
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