JLR to cut costs by £4.5 billion

Luxury carmaker Jaguar Land Rover (JLR) has launched a secret project to cut costs of £4.5 billion ($6.8 billion) and build 1 million cars per year by the end of the decade, reports the Sunday Times.

The project, dubbed Leap 4.5, will entail building more cars on similar core skeletons, overhauling the carmaker’s supply chains and slowing down or halting the recruitment process, although there are no plans for redundancies, according to inside sources.

Leap 4.5, envisaged to offset the effects of slowing sales in China and the costs of meeting emissions standards, will however spare the £3 billion per year capital spending budget on research and development and building new plants.

Sales in China, the firm’s fastest growing market last year, fell 32 per cent in the July to September quarter due to an economic slowdown, stock market slump and currency devaluation, which have hit demand in the world’s biggest car market.