After weeks of speculation and a leaked memo, an insider from Tata Motors has confirmed the pending sale of Jaguar Land Rover to German car maker Volkswagen. JLR posted a loss of $3.9 billion in the last quarter that ended on December 31st, ultimately forcing S&P Global Ratings to lower its credit rating.
The sale of JLR by Tata Motors doesn’t come as a surprise, the only surprise was Volkswagen’s interest in the ownership of the British company, also during interesting times when Brexit is a major concern for UK based car manufacturers. VW is currently valued at over £35 billion including Chery Jaguar Land Rover in China.
At the Geneva Motor Show 2018, speaking to GTsprit.com JLR CEO Dr Ralf Speth hinted vaguely at a pending major shift of events when asked about the recent losses. “We are actively working on a contingency plan which should be announced in coming weeks.”
VW declined to comment on this issue but sources familiar to the matter from the German side stated that all future JLR vehicles will be electrified soon after the change of ownership, while some models will be deleted. VW will likely focus on the Range Rover, Discovery, a new Defender and Jaguar SUVs while models like Evoque and Jaguar sedans will be discontinued.
Source: Bloomberg and Autocar India.