Jaguar Land Rover To Invest Big Cash In The Future
|   Saturday, April 06, 2013
The good people from Britain's Autocar have managed to get their hands on some nice pieces of information that will surely appeal to everyone. It seems the big bosses of Jaguar Land Rover have equally bi plans for the future, and they want to make those plans reality by investing 11 billion pounds in the company's development in the next 4 years.

The sum is broken down into smaller amounts, about 2.75 billion pounds per year, that will be directed towards developing new modes and bettering production capacities.
This is part of the group's move for world domination.
Chief executive Ralf Speth told the British publication that "It is absolutely critical that we diversify production around the world, but to be absolutely clear, we have an absolute commitment to the UK and will continue to invest there as long as we have free and fair trade." That statement was made in order to ease any fear that might have arisen when people learned about this decision and thought the group will reduce focus on the homeland division.

This decision will only serve to further the group's prospects for profitability as new markets are developing and auto companies have to target more and more people with a highly uneven composition. Speth again "That is why we already assemble cars in Indi, which is a low-volume first step there, we are working on our joint venture with Chery in China, and we are investigating possibilities in Saudi Arabia, where we can see a flourishing automotive business thriving one day."

Sales for the group have been rising, mainly due to the ever increasing SUV market. Based on those results those with decision making power think they can maintain a sustained rhythm of investments that will ultimately prove very profitable. "You have to invest in big amounts of seed in order to reap the harvest, which is what we are doing," said Speth.

However, in spite of growing success, the company will most likely be forced to turn to banks for the necessary funds. The group's profits for 2012-2013 can be expected to go over 1.6 billion pounds. That leaves about half of the predicted annual investment sum is met.

Apparently, Jaguar Land Rover has already done so. Massive amounts of money have been borrowed to finance the ambitious plans and it is predicted this type of actions will continue in the future. If the group wants to survive on the markets for an extended period of time, it has to take his risk and expand the range of its models and production capabilities. Right now, the group's power-horses are the Evoque and Freelander, which make up 52 % of the last year's sales. This is not a solid growth base if you want to stay in the game for the next half of century. Having too many platforms and relying on outsides for the engines is likewise not a good idea.
Those were some of the factors why so much money is planned on being spent so fast, and we can only hope the gamble pays off.
PHOTO GALLERY
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