Rumours prompt owner to reaffirm its commitment to the luxury car maker
The chairman of Tata Motors has gone on the record to state the Indian automaker has no plans to sell Jaguar Land Rover (JLR) or discontinue the Jaguar marque.
In the third quarter of 2018 the company lost £90 million ($160 million) due to weakness in the Chinese market, local Brexit woes, and dwindling demand for diesel-powered vehicles and traditional sedan models.
A report in the Financial Times earlier this month indicates the company will soon announce a £2.5 billion ($4.4 billion) turnaround plan, which could include up to 5000 jobs being cut.
This has triggered some speculation about the luxury automaker's long term future.
In response, Natarajan Chandrasekaran, chairman of Jaguar Land Rover and its owner Tata Motors, issued a statement to Autocar and other outlets stating, “I would like to clarify that we remain committed to the long-term growth and success of JLR".
He noted the company "will continue to face global headwinds being experienced by the auto industry", but said Jaguar Land Rover's management was on the right course to "drive operational excellence", as well as "invest in innovative products and technology to stay competitive globally"
Chandrasekaran concluded, "There is no truth to the rumours that Tata Motors is looking to divest our stake in JLR or discontinue the Jaguar brand".
With the help of its latest owner Jaguar Land Rover has invested heavily in new models, platforms, new factories and improved facilities. New vehicles, such as the Jaguar F-Pace and Range Rover Velar, have generated healthy sales and profits.
On the other hand, traditional sedans, such as the Jaguar XF and the long-awaited 3 Series-fighting XE have found it to be tough work in a world that's favouring crossover vehicles in greater and greater numbers.