As no one from the Media has bothered to analyse JLR's situation, especially in light of its sizeable quarter loss(but still massively less than real) - they dare not of course, 'the third rail', don't want to pick up their P45s, or be off the gravytrain - so allow me.
This was inspired this morning by this odd little site, which to be fair to it at least attempted some analysis - compared to zero by the 'heavyweights'/'doyens' like Steve Cropley, Hilton Holloway, Jonny Lieberman, Angus MacKenzie, and of course 'inside-track'/deepthroat' merchant Georg Kacher, not to mention Bloomberg, Reuters, FT, The Times, Guardian, Telegraph, This is Money(Daily Mail), and the 'heavyweight' rags in India.
The global chip shortage is hitting the auto industry hard. Nevertheless, Jaguar Land Rover is not completely dissatisfied with the current state of affairs. According to CEO Thierry Bolloré, Jaguar Land Rover cars have become a lot more attractive. With fewer cars leaving the production line...
www.ruetir.com
This is what Bollore was really saying, spelling it out as clearly as he could, without stating the bleeding obvious:
- 'JLR' will be a fraction of the size it was/was planned to be under Speth
- the garbage, non-Range Rover/Range Rover clone models, will be chopped - wither and die - DSport/Evoque/E-Pace, Velar/F-Pace - hence the massive output fall
- 'JLR' will be pitching itself as Bentley/Rolls-Royce - for price and margin
- 'Jaguar' is still a 'TBA', i.e. no one's come forward to buy it, or show any interest
- everything, as anyone with a brain knew, is bet on Range Rover and its clones - RRSport/Defender/Discovery(5)
- Bollore's masters in Bombay hope this hyper-margin, much reduced overhead strategy - inevitable car plant closures?, major white collar sackings? - will allow them to float JLR on the stock market, and so be rid of it, and get a few bob.
- the clue is in the drip, drip of the new Range Rover order situation - now a whopping 46,000 - according to straight as a die source JLR - up from the 30/31,000 a couple/three months ago - wow!
- this is meant to show that JLR as a floated entity could be mega profitable - approaching Bentley margins, with a multiple of output - that's how they'll pitch the IPO
In summary, JLR is in a worse situation than ever. Posh-EV has killed it stone dead; the ending of the flipping mania amongst greedy idiots in the UK, and to an extent US, buying Defenders etc; and now the almost explicitly stated need to massively shrink the company, both on the production plant side and the overhead cost side - thousands, tens of thousands of white collars for the chop.