JLR will cut production of the cheapest models. The more expensive ones will earn more, and this is especially important in the era of the semiconductor crisis.
The crisis with the availability of semiconductors, and therefore with the availability of new cars, is coming to an end very slowly. The wait for new cars is a bit shorter…but that doesn’t mean the situation is good. Sales are still declining (including due to inflation and the worsening economic situation), and brands are showing worse financial results. When will everything settle down? Unfortunately, no one knows.
The difficult situation prompts the heads of automobile companies to look for various solutions to increase not only the total sales, but profitability. And as you know, the most expensive models are usually the most profitable. Good profit margins are also easier to achieve with electric vehicles.
Jaguar Land Rover is taking steps
Jaguar Land Rover, owned by India’s Tata Motors, will soon cut production at its Solihull plant, according to anecdotal information allegedly provided by people linked to the British company. According to anonymous sources, the manufacturer will delay launches including the Land Rover Discovery and Jaguar F-Pace, focusing on the most profitable models such as the Range Rover and Range Rover Sport.
What about the Range Rover Ewok?
It is not yet known whether production will also be reduced at the Halewood plant, where the relatively “cheap” Range Rover Evoque is being built. As you can see, buyers of more expensive JLR vehicles can get in trouble and have to wait a long time for their dream car. Perhaps by then they will be able to stock up on large Range Rovers.
Source: Wprost
