Volkswagen Group, the German Car giant already owns twelve famous car brands. It is planning to add another name to the list. Volkswagen already owns brands such as Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Skoda, and others.
Jaguar Land Rover had to suffer a huge loss last year. Land Rover’s production is centered in the United Kingdom and Brexit made things worse for them. The sales are falling and costs are rising.
Jaguar Land Rover is losing a lot of money
Jaguar Land Rover has already lost £3 billion in the last quarter (till 31st December 2018). The primary reasons are Brexit, China issues and change in US tariffs.
Britain’s exit from The European Union created a lot of problems for JLR. A loss of around one billion pound is expected due to border tariffs and increased taxes. Production has also been halted many times due to Brexit.
JLR CFO Ken Gregor revealed that China is their single biggest challenge. The sales dropped by 44 percent in the last quarter. The reason is increased import tariffs and the people there preferring locally made products.
President Donald Trump has changed tariffs on European Cars. Sources estimate a loss of a billion pounds annually.
TATA Motors stance on the issue
Back in 2008, Land Rover was nearly bankrupt, Tata Motors purchased it from Jaguar and made it a successful brand. It’s sales increased by 300 percent till 2017, but the year 2018 was a huge letdown.
The company lost £3 billion pounds in the last quarter, which has lowered the credibility of Tata Motors. Jobs are slashed, production is lowered, R&D budget is reduced to tackle the loss.
Natarajan Chandrasekaran, chairman of JLR and Tata Motors, has told that there are no plans to divest the company. Although the rumors are saying a different story.
Volkswagen-Jaguar Land Rover’s Secret Deal
According to a leaked report, Volkswagen will buy Jaguar Land Rover for £ 30 billion from Tata Motors. Insiders from Tata Motor are confirming the sale.
German sources are saying that Volkswagen will electrify some models, while the less popular models will be discontinued. Range Rover, Discovery, Defender and Jaguar SUV’s will be retained.
Jaguar Sedan and Evoque’s production will be stopped. Stay Tuned to Hiptoro for more the latest auto updates.
UPDATE: IT’S ALL AN APRIL FOOLS’ JOKE.