Jaguar Land Rover Stages Dramatic Turnaround

May 31 2011

Many patriotic car credit buyers who would love to see the UK motor industry return to its former glory and will no doubt be happy to hear that Jaguar Land Rover has experienced a dramatic turnaround.  Holding company Tata of India reported a very nice profit of £1.1bn for its UK subsidiary for the year ending 31st March 2011.

How remarkable the turnaround is can be better appreciated if one takes into account that in 2010 the company barely made a £14.6m profit, and in 2009 they nearly went bust with a loss of £673m.

The problem was of course that JLR mainly produced big, fuel-hungry and expensive cars.  During the recession the company feared it might have to close one of its three UK factories.

With things going so well now, there are even rumours doing the rounds that the company plans to build a new plant to meet the demand for its products.  This will help them to build volumes to levels approaching that of their main German rivals Mercedes Benz and BMW.

Tata Motors is of course controlled by the living legend Ratan Tata.  The company bought an ailing Jaguar Land Rover from Ford for a mere £1.5bn three years ago.  Ford could hardly manage to make any profit with the JLR brand over the last 20 years.

It now seems that Tata was able to turn things around rather quickly.  Growth fuelled by new products and a quickly recovering demand from countries such as India, China and Russia all contributed to the successful turnaround strategy.

Author - Louise Hutchinson

More from JAGUAR News

---

---

---

---

---

---

---

---

---

---

---