Jaguar Land Rover Investing $4.2 Billion in New Produts

JaguarJaguarUnited Kingdom, 1922 > present53 models
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Land RoverLand RoverUnited Kingdom, 1978 > present15 models
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has announced that it will invest £2.75 billion ($4.2 billion or €3.25 billion) for each of the next four years into new products and production capacity. The investment will likely require a large loan, as the yearly investment is nearly double Jaguar Land Rover's profit last year. 

"A global footprint is critical to our UK stability. That is why we already assemble cars in India, which is a low-volume first step there, we are working on our joint venture with CheryCheryChina, 1997 > present7 models
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in China, and we are investigating possibilities in Saudi Arabia, where we can see a flourishing automotive business thriving one day,” said Jaguar Land Rover CEO Ralf Speth.

Speth says that the investment comes in part to build momentum in the company. It will make major investments now to create world-class cars so that it can increase volume to be able to invest more farther in the future.

The investment will allow Jaguar Land Rover to broaden its model lineup to diversify sales. While Land Rover has been gradually adding new products, 52% of its sales last year came from the EvoqueLand Rover Range Rover EvoqueUnited Kingdom, 2011 > present128 versions
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and FreelanderLand Rover Freelander Gen.2United Kingdom, 2007 > present65 versions
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. It would prefer if other models picked up some of those sales. 

The other investment push will be in more factories. It has nearly completed its new engine factory in the UK and will add a new factory in China. 

Source: Autocar