Jaguar aims for more sustainable supply chain in the belly of the pandemic.
Going Green Timeline Snapshot:
Jaguar Land Rover “JLR” (issuer and parent company of Tata Motors/Jaguar Land Rover subsidaries) holds €500,000,000 due 2024 and, €300,000,000 due 2026 in public offerings to cover cooperate operations.
Employee led Charity: Sep. 2020 Jaguar Employees start 50k Charity Giveaway
All Electric Jaguar Fleet by 2025 and ‘mostly’ electric for Land Rover
Earth by 2039:
Zero Net Emissions Across Supply Chain for Jaguar Land Rover Automotive
What does that all mean?
As Jaguar rebrands itself amidst a global pandemic, there are two things we know for a fact:
1) Jaguar as a Luxury electric brand is bracing itself to become a thing and 2)luxury motor company has primed it’s work force towards the profitability of electric battery manufacturing and ultimately a zero emission supply chain.
So why the sudden Uproar?
Jaguar announced today that it would make a commitment towards having an all-electric vehicle fleet by 2025, while Land Rover at large will host both electric and combustible engine fleets.
During recent interviews Jaguar Land Rovers CEO Bolloré started, “We have all the ingredients at our disposal to reimagine the business and the experiences our customers seek, to reimagine to benchmark of luxury”.
The Long Run of Luxury
This announcement comes a year after Jaguar Land Rover released their “Reimagine Strategy” that proposes the company will achieve a net zero carbon emissions across their supply chain, products and operations by 2039.
“Its roadmap to a future that is built around sustainability, with electrified and hydrogen models as well as investment in connected and digital technologies, aligns with government ambition and increasing consumer expectations.
Like wise he mentions the “government must ensure advanced manufacturing has its full support, with a policy framework and plan for growth that reduces costs, accelerates domestic battery production and electrified supply chains, and incentives R&D and skills development,” he said.
As the global transportation supply chain develop, their is a clear necessity for a workforce that services and manufactures both Gas and Electric powered engines. Jaguar Land Rover understands this demand and knows this response also includes a more collaborative government effort to accommodate the existing fleet of gas powered vehicles that continue to enter into the realm of ‘highly desired’ collectible.
Under the Reimagine Strategy, Bolloré said that JLR will become a “battery first business.” For Land Rover, there are six new BEVs scheduled to arrive by 2026, although the first of these isn’t due until 2024. Future Land Rovers will be built using a pair of new flexible vehicle architectures—Modular Longitudinal Architecture and Electric Modular Architecture—both of which are powertrain-agnostic. And production for MLA vehicles will take place at Solihull in the British midlands.
By 2026, the brand will also retire its diesel engines, and Bolloré said that by 2036, Land Rover should have zero tailpipe emissions, with a goal for the entire company to be carbon-neutral by 2039.
So how can a luxury car company like Jaguar afford to rebrand itself so aggressive- not to mention during a pandemic? Long story short, the parent company Jaguar Land Rover Automotive has called on investors for a €800,000,000 Senior notes offering over the next 6 years.
This is just a fancy way of saying the parent company mentioned (Jaguar Land Rover Automotive) will be selling 500million in securities or “future debt” to investors with a expected return of 5.37% on their investment.
According to investepedia, depending on an institution’s market demand or pricing structure, raising capital through securities can be a preferred alternative to financing through a bank loan.
This securities injection can be seen as the spark, that signaled Jaguars Land Rovers heavy handed sprint towards competing with other Luxury Electric fleets like Elon Musk’s Tesla.
Written By Jeremy Wiles
Edited By Joseph Wiles
All photo rights reserved and belong to Jaguar Land Rover Automotove Group and Investor Relations