Jaguar Land Rover (JLR) has announced it will be targeting £1.1bn of cost savings over the next year.
In results for the last three months of 2019, the carmaker said its Project Charge programme had so far cut costs and made cashflow improvements to the tune of £2.9bn, ahead of a £2.5bn target.
JLR said the next phase of Project Charge “will primarily target cost savings and deliver a further £1.1bn of cost and cashflow improvements for a total of £4bn of improvements by March 2021”.
The carmaker said in the last quarter of 2019 alone operating costs had been reduced by £154m and inventories by £405m.
Earlier in January JLR said it would be aiming to reduce the size of its global workforce by around 4,500 people, in addition to 1,500 who left in 2018.
Ralf Speth, who will be standing down as CEO and become non-executive vice chairman of JLR, said: “Our improving financial results and the cost and cash flow achievements of Project Charge will support the next phase of our pipeline of exciting new vehicles and technologies.”
The latest results showed revenues increased 2.7% year-on-year to £6.4bn, with total retail sales dropping 2.3% but sales in China up 24.3%. Profits before tax in the quarter rose to £318m, up £591m year-on-year. However, the carmaker warned the coronavirus could impact future profitability.
Also in January JLR announced it was trialling a “morphable” seat that uses actuators in the foam that “make your brain think you’re walking”.
“By simulating the rhythm of walking, a movement known as pelvic oscillation, the technology can help mitigate against the health risks of sitting down for too long on extended journeys with UK drivers covering an average of 146 miles every week,” the company said.
In December last year JLR said it was using a 3D-printed dog paw to test the resilience of paint on the new Land Rover Defender to scratch marks, by mimicking the action of a dog climbing in and out in a “5,000 cycle abrasion test”.
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