What would be the advantages of selling JLR to PSA?
- If an agreement between the FCA and PSA groups fails, the French manufacturer could switch its focus to the Jaguar Land-Rover group, which belongs to the Indian group Tata Motors.
- The British luxury car group is currently experiencing real difficulties due in particular to the uncertainties linked to the introduction of Brexit, the drop in diesel vehicle sales and the decline in the Chinese automobile market. In addition, the Indian group Tata Motors had invested heavily in diversifying the range of Jaguar and Land Rover models just before the Brexit vote, and the return on investment seems to be resulting in heavy losses.
- Moreover , the launch of the British group's first electric car, the Jaguar i-Pace, and the construction of a new plant in Slovakia, in Nitra, required major investments, at a time when the European and global automotive market was beginning to decline. The manufacturer's debt is now very high and the manufacturer has recently decided to drastically reduce costs. It will cut 10% of its workforce and slow down its production (its factories will be shut down for a week in April).
- It would not be surprising in this context if Tata Motors would consider selling the JLR group to another manufacturer. The PSA group seems best placed to acquire Jaguar and Land Rover, as the French manufacturer is looking to expand its offer, particularly in the Premium category where it is currently not very active. The DS brand would need to develop at least another ten years in order to achieve real legitimacy in this category.
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