On 3 February 2009 was, the mood somber and depressing at the Birmingham International Convention Centre as cold as ice, as in the winter outside. The terrible reality dawned on the participants was the fact that the prestigious Jaguar and Land Rover luxury brands are facing the worst financial crisis since the loss of the BMW brand in 90 years.
Jaguar Land Rover CEO David Smith told the audience: “In 25 years in the automotive industry, I’ve never experienced a moment quite as banks will not lend and consumers are not spending someone has put oil into the engine back we have… The manufacturers go bankrupt every one to two days. “
Several industry leaders have said the dire situation. Professor David Bailey of Birmingham Business School, said that the unprecedented crisis could be another 30,000 to 40,000 jobs lost look. Tony Woodley, Unite joint leader admitted that JLR will need half an immediate one billion points.
After removal of the Ford Motors in 2008 as the global economic downturn was the worst, get in the first year of ownership to Tata was nothing less than a disaster. A few weeks after the poor prognosis of Smith, Bailey and Woodley, known JLR ends in a loss of $ 280 million for its first 10 months of the property March 2009. In another three months announced, Ravi Kant, Vice President of Tata Motors, the 2000 jobs lost through plant closures in progress are gone. In June, the unions have agreed to the $ freeze wages and working hours of concessions to save 70 million for the company.
Despite the compromises Union, published in September, the company plans to close its plant in Solihull Land Rover history and its plant in Castle Bromwich Jaguar. The possible closure prompted Unite national secretary for the automotive industry in the country accuse the JLR plotting an exit strategy from the United Kingdom.
Unfortunately for the British, after losing nearly all its car brands noticed in India (Land Rover and Jaguar to Tata Motors), Malaysia (Lotus to Proton), China (Nanjing MG and Austin car), Germany (Rolls Royce, BMW, Volkswagen and Bentley ), the United States (Leyland to Paccar) and the Middle East (Aston Martin to Kuwaiti investors, a British company), is the country’s auto industry now only a little shadow of itself.
There’s really nothing to the owners of the old mill closures in the UK, the higher wage costs than, say, China, India and Vietnam have to stop.
Turnaround attributed to new management team
Today, despite the closure plans is like a sword of Damocles hanging, JLR announced record profits of over $ 234 million from April to June, improved for the fifth quarter. For the twelve months ending March 2010, a year after his stunning performance in 2009 JLR posted a 32 million euro profit before tax.
Credit where credit is due, the newly appointed management team of Carl-Peter Forster, former CEO of GM in Europe and now CEO of Tata Motors was working, and Ralf Speth head of the company Jaguar Land Rover to turn around the JLR in distress.
Bhattachgaryya Mr. Kumar, one of the most famous automobile UK expert said that JLR has to do more productive and efficient with fewer people and now have a team of good behavior.