A strategy that revolutionised a proud automotive manufacturer

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The turnaround at Jaguar Land Rover (JLR) is a great indication of the resurgence of the automotive industry in the UK. During the global financial crisis in 2008 the company was struggling greatly and it was looking like the $1.5 billion that Tata paid to buy the business was a bad investment. Although sales exceeded 200,000 vehicles a year the manufacturer was still struggling.

The turnaround is astonishing when you consider that last year JLR produced over 500,000 vehicles. This made the company one of the leading producers in the UK. So how did the revolution happen?

Tata’s plan was to rely on the knowledge and experience of the product developers at Jaguar. They gave them the freedom and funding to create new models. It was a brave move, abandoning conservatism to pursue developments and hopefully transform the fortunes of the business. The XF was just one of the success stories of the move.

Alongside this the right investments were made by Tata. JLR had been notorious for under-investing and focusing on the short term rather than the future. The new owners had a different outlook, focusing on the long term. They invested heavily in their facilities, including creating more automotive jobs to increase production. Investments to date total over $11.5 billion.

The success of JLR had a big benefit on other businesses in the sector, including suppliers up and down the supply chain, dealers, and other after sales providers. The outlook for the industry is much healthier now, especially with more cutting edge technological developments expected in the coming years.

At John Gibson Associates we have been well placed to observe the resurgence of the UK automotive industry. We are a specialist recruiter for businesses involved in it, offering assistance with a wide array of needs. We help with the whole recruitment process, from determining your requirements to creating a brief and finding the right applicants. At all stages we offer the very best support.

We take the time to monitor the activity across our industry so we can offer the right help to all clients. Our observations give us great optimism for the future.