Jaguar Land Rover plans to build a new range of electrified cars in the UK, safeguarding thousands of jobs and providing a boost for a British automotive industry that’s been rocked by job cuts and plant closures.
The move, announced on Friday, involves hundreds of millions of pounds in investments. It guarantees the future of the company’s Castle Bromwich plant in central England and comes after JLR committed to offering electrified options of all new models from 2020. The first electric vehicle off the production line will be the ninth generation of Jaguar’s flagship XJ saloon.
Brexit, a slowdown in China and flagging demand for diesel-powered vehicles have taken a toll on JLR, which owns the iconic Jaguar sports-car and Land Rover 4x4 brands. The company, part of India’s Tata Motors, said in January it would slash 4,500 jobs worldwide to conserve cash, and Tata is exploring options for the business, it was reported in March.
While contending with the slowdown JLR, like other car makers, is also navigating a costly transition toward electrification. While the Jaguar I-Pace 4x4, its first all-electric car, is being made in Austria, the company is retooling part of its Solihull plant, also in the English Midlands, to make electric versions of Land Rover’s top-end Range Rover models.
More basic vehicles are being moved to a lower-cost site in Slovakia.
JLR chief executive Ralf Speth said both the Jaguar and Land Rover brands are intrinsically British and that the UK also offers a combination of design and engineering know-how that makes focusing electric-vehicle production there the logical decision, regardless of any concerns involving Brexit-related uncertainty.
At the same time Mr Speth called on the government and industry to work together to establish giga-scale battery production, saying that’s something no one manufacturer can manage alone.
UK business secretary Greg Clark called the decision on Castle Bromwich a “vote of confidence” in the UK car sector that would put Britain at the forefront of electric-vehicle technology.
Work will commence this month on facilities and technology that will allow diesel and petrol vehicles to be produced alongside full electric and hybrid models. So complete will be the transformation that the plant will close and become a building site, Mr Speth said
JLR in January confirmed plans to locate a new battery assembly centre at Hams Hall, close to the two assembly plants. The site will become operational in 2020 with annual capacity for 150,000 units. The company also has an engine factory in nearby Wolverhampton that it says will power the next generation of Jaguar and Land Rover models.
The decision to go electric vhicle came as the firm sought to crank up the drama surrounding the first public outing of its revamped Defender 4x4, keeping the car in disguise on a hill climb at the Goodwood Festival of Speed in England over the weekend.
The successor to the iconic model, produced almost unchanged through seven decades, will go on sale next year with an official unveil planned in the coming months.
At Goodwood it remained in heavy camouflage to hide its design and help maximise the impact of a vehicle that will be more closely pored over than any other in JLR’s range.
While the company has moved upmarket with its most luxurious Range Rovers selling for more than £150,000 (Dh690,166), the go-anywhere ability of a model traditionally favoured by farmers and explorers is still a key attraction for customers who will never leave the highway.
The vehicle will establish itself as the world’s most capable off-road performer while offering “engaging on-road dynamics,” Land Rover chief engineer Mike Cross said at the event near England’s south coast, suggesting it may offer a smoother ride than the sometimes bone-shaking original.
No price has yet been revealed for the 2020 launch but the car will likely retail from around £40,000, according to reports, significantly more than the old model. It will come in three versions, seating between five and eight people, Autocar reported this month, citing documents published by the Disco4.com forum.
While JLR has said that all of its models will have some form of electric option from next year, it did not say whether the Defender will come as a hybrid or feature an all-electric variant.
The Defender made a couple of uphill runs a day at the Goodwood event, which ended on Sunday. A second car, displayed clambering over boulders at the JLR podium, had its lights, grill and other external features masked. The body had been padded out to disguise its true contours, according to a company official.
JLR has clocked up 1.5 million in test kilometres for the Defender and recently completed what it called a “real-world” trial in Kenya that saw the 4x4 wade rivers, climb steeply sloping hillsides and pull heavily loaded trailers while tracking lions in the Borana game reserve.
First glimpses confirmed the new car features the same boxy silhouette as the original British legend that ceased production in 2016. The vehicle counted Winston Churchill and Queen Elizabeth II among its fans, and shuttled soldiers in the Korean War and Red Cross volunteers to crisis zones.
That model stayed remarkably unchanged until tougher carbon-dioxide emission standards and pedestrian safety concerns eventually made an overhaul unavoidable. Of the more than 2 million built, around 70 per cent are thought to survive today.
Putting the new Defender on the road is a bright spot for JLR as it struggles with fallout from the UK’s decision to leave the European Union and slumping sales in China. The country’s biggest car manufacturer said in January it would cut 10 per cent of its workers globally.
The new car was developed in Gaydon, England, and will be produced at Land Rover’s new, lower-cost plant in Slovakia.
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The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
MATCH INFO
Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
UAE currency: the story behind the money in your pockets
UAE%20v%20West%20Indies
%3Cp%3EFirst%20ODI%20-%20Sunday%2C%20June%204%20%0D%3Cbr%3ESecond%20ODI%20-%20Tuesday%2C%20June%206%20%0D%3Cbr%3EThird%20ODI%20-%20Friday%2C%20June%209%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EMatches%20at%20Sharjah%20Cricket%20Stadium.%20All%20games%20start%20at%204.30pm%0D%3Cbr%3E%0D%3Cbr%3E%3Cstrong%3EUAE%20squad%3C%2Fstrong%3E%0D%3Cbr%3EMuhammad%20Waseem%20(captain)%2C%20Aayan%20Khan%2C%20Adithya%20Shetty%2C%20Ali%20Naseer%2C%20Ansh%20Tandon%2C%20Aryansh%20Sharma%2C%20Asif%20Khan%2C%20Basil%20Hameed%2C%20Ethan%20D%E2%80%99Souza%2C%20Fahad%20Nawaz%2C%20Jonathan%20Figy%2C%20Junaid%20Siddique%2C%20Karthik%20Meiyappan%2C%20Lovepreet%20Singh%2C%20Matiullah%2C%20Mohammed%20Faraazuddin%2C%20Muhammad%20Jawadullah%2C%20Rameez%20Shahzad%2C%20Rohan%20Mustafa%2C%20Sanchit%20Sharma%2C%20Vriitya%20Aravind%2C%20Zahoor%20Khan%0D%3C%2Fp%3E%0A
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE currency: the story behind the money in your pockets
THE%20SPECS
%3Cp%3EEngine%3A%203-litre%20V6%20turbo%20(standard%20model%2C%20E-hybrid)%3B%204-litre%20V8%20biturbo%20(S)%0D%3Cbr%3EPower%3A%20350hp%20(standard)%3B%20463hp%20(E-hybrid)%3B%20467hp%20(S)%0D%3Cbr%3ETorque%3A%20500Nm%20(standard)%3B%20650Nm%20(E-hybrid)%3B%20600Nm%20(S)%0D%0D%3Cbr%3EPrice%3A%20From%20Dh368%2C500%0D%3Cbr%3EOn%20sale%3A%20Now%3C%2Fp%3E%0A
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Simran
Director Hansal Mehta
Stars: Kangana Ranaut, Soham Shah, Esha Tiwari Pandey
Three stars
ULTRA PROCESSED FOODS
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- Margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars
- Energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- Infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes
- Many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Klopp at the Kop
Matches 68; Wins 35; Draws 19; Losses 14; Goals For 133; Goals Against 82
- Eighth place in Premier League in 2015/16
- Runners-up in Europa League in 2016
- Runners-up in League Cup in 2016
- Fourth place in Premier League in 2016/17
The specs
Engine: 4.0-litre, twin-turbocharged V8
Transmission: nine-speed automatic
Power: 630bhp
Torque: 900Nm
Price: Dh810,000
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind