Jaguar Land Rover will slash its manufacturing capacity by 25 percent over five years and write off investment in products it’s decided to scrap under new CEO Thierry Bollore.
The British automaker will take a non-cash charge of about 1 billion pounds ($1.4 billion) in the quarter ending in March related to higher previous spending and projects it will not complete, according to an investor presentation. The company said last week it was calling off plans to build a battery-powered replacement of the Jaguar XJ sedan.
The Tata Motors-owned automaker’s new business plan under Bollore, 57, includes making the Jaguar marque all-electric within four years while giving the Land Rover SUV brand more time to make the jump. On Friday, the automaker said it has lowered its breakeven point to about 400,000 vehicles a year, from 600,000.