Jaguar to cut production by 2,000,000 cars, as China orders more than $1 billion
Posted October 05, 2018 08:09:18 Jaguar has confirmed it will reduce production of its iconic V-6 supercar by up to 2,400,000 vehicles, in what it says will be a significant restructuring for the automaker.
The decision comes after the Chinese government ordered a total of $1.8 billion ($1.2 billion) to invest in Jaguar’s manufacturing operations, including the production of the iconic Jaguar XJ XE.
Jaguar has previously indicated that it will slash production of a range of models, including models with a four-cylinder engine.
“The cost reduction targets are driven by a combination of the government’s order and financial commitments,” Jaguar’s Chief Financial Officer Paul Devereux said in a statement.
“These include an order for up to $1bn for the development and production of new Jaguar XE and XJ models, a significant investment in Jaguar UK, including $1 million of additional investment in its plant in Manchester, and the delivery of new vehicles, including a range to customers such as Rolls-Royce and Honda.”
Jaguars production target for 2018The company said the changes will come into effect on November 30, with the automarket expected to announce an initial production figure by the end of the year.
The automaker said it expects to increase the number of cars it produces to around 100,000 by the middle of the decade, with its global fleet expected to reach 1.7 million by the year 2021.
Jabra says the reduction in the number will have no impact on its current sales or profitability.
