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Jaguar Land Rover plans to cut a quarter of its production in turnaround plan

JLR's been in perpetual trouble for a while. Now, a massive overhaul will see the company think smaller.

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Fewer cars, more luxury. Totally electric.

Antuan Goodwin/Roadshow

Big changes are coming to British automaker Jaguar Land Rover as the company plans to cut its production capacity by 25% over the next five years. The production changes come as JLR reimagines itself as primarily an electric-car brand with Jaguar, while Land Rover moves a touch slower to go totally EV with its line of SUVs.

Bloomberg first reported on the production cuts coming last Friday, citing an investor presentation, and JLR confirmed the reduction with Roadshow. Cutting the number of cars the automaker builds is just one step as rumors mount that Jaguar will rethink what it considers a rival. Signs point to Jaguar moving upmarket and away from BMW, Audi and Mercedes-Benz. Rather, the British marque would be more akin to Bentley, another British automaker. Jaguar's gone through numerous major changes in the past 10 years-plus, but positioning the brand as even more luxurious is a totally different pursuit.

Jaguar also confirmed it no longer plans to build an electric XJ sedan as it prepares to charge off $1.4 billion worth of uncompleted projects internally, according to the investor presentation. It's further fuel to the rumor the brand plans to seriously remake itself in the image of something more premium. Even with an electric XJ out, the brand committed to go fully electric by 2025.

Land Rover, meanwhile, didn't provide a firm EV commitment. However, the SUV maker plans for six electric vehicles in the next five years. By the end of this decade, Land Rover believes 60% of all its vehicles sold will be zero-emissions models. In the longer term, JLR laid out plans to be completely carbon neutral by 2039. All of it really begins as Jaguar unleashes its "unique potential," as the brand described its luxury EV transformation last month, starting in 2025.

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