JLR's immediate plans in place, future may be difficult
12 May 2009
Tata owned Jaguar Land Rover (JLR) says the tide is turning for the better. But its funding problems are far from over. JLR says its immediate launch plan is in place but the future may be difficult. CNBC-TV18's Sumantra Barooah reports.
Land Rover's attempt at introducing a compact and a more fuel efficient SUV may get delayed if it doesn't get financial aid. The LRX is probably the first step towards manufacturing a series of models that are much more environment friendly. JLR says its immediate launch plan is in place but the future may be difficult.
Don Hume, Director-Corporate and Govt Affairs, Jaguar Land Rover, said, "The reality is much of our focus now is on developing new greener technologies for the future, and it's here where there would be significant impact if we can't encourage assistance in the short term to help us through the difficulties of the current economic crisis. Our final decision on that is yet to be taken. In fact, it's not duel till later this year as we go through a number of engineering processes. The reality is much of our focus now is on developing new greener technologies for the future, and it's here where there would be significant impact if we can't encourage assistance in the short term to help us through the difficulties of the current economic crisis.''
While funds are a problem, it says that the worst could be over in the market. Which is why it has just launched the 2010 version of the XF and the XK, with the most efficient engines Jaguar has ever made. Land Rover, on the other hand will launch 2010 versions of its Discovery, Range Rover Sport and Range Rover later this year.
On this Hume said, "Certainly, there are a lot more enquiries now. And we are seeing more traffic into the showrooms. Now, this may be partially driven, of course, by the new models that Jaguar and Land Rover are currently introducing and we would expect that to some extent. It's too early to get too excited but these are some encouraging first signs."
And more encouraging signs, the company says, are coming from China and Russia. And more powerful, environment friendly and exciting cars could take it further. But in order to sustain its rich R&D budget, which stood at an annual average of 450 million pounds, before Tata took over, a solid financial aid is crucial.
