Why a PSA-Tata deal could give Jaguar its own 1-series

Wednesday, December 7th, 2016 - autos, cars, motoring, news

Source : Why a PSA-Tata deal could give Jaguar its own 1-series

Jaguar Land Rover needs more tiny designs to boost its profitability; a future deal with PSA could help the item to make them

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An opportunity for Jaguar Land Rover to have its own volume-boosting equivalents to the BMW’ 1-series, Mercedes A-Class in addition to also Audi’ A1 could be the long-term result of an embryonic Indian deal currently under evaluation between PSA in addition to also Tata Motors, JLR’’s owner.

The Indian deal, said by local sources to have been “fast-tracked” by PSA’’s dynamic boss Carlos Tavares, involves using spare capacity in Tata’’s modern however underutilised Nano microcar factory to build PSA designs for sale inside Indian market, which PSA abandoned about 15 years ago. The plan could extend to distribution of PSA-built designs through Tata’’s sales in addition to also distribution network. The partners could also share engine technology.

Indian sources suggest the Tata-PSA proposal could provide both a remedy for Tata’’s weak car sales in addition to also waning manufacture, in addition to also a chance for PSA to further its long-stated aim of achieving a much bigger proportion of its total sales outside Europe.

The JLR thread takes This particular plan several steps further. Industry pundits already suggest Jaguar in addition to also Land Rover will never develop the commercial or product-replacement power of Audi, BMW in addition to also Mercedes as long as their ranges extend no further downward than the Jaguar XE in addition to also Range Rover Evoque. Jaguar in addition to also Land Rover production will hit 500,000 cars in 2015 —in addition to also more like 750,000 when its Jaguar F-Pace in addition to also XE designs reach fruition – however— will never get close to BMW’’s two million units a year without building smaller designs.

Looking further into the future, a thriving relationship between the British firms’ owner in addition to also PSA could provide JLR with much of the hardware the item could need to launch such designs.

JLR dismisses the idea as “pure speculation”, citing the fact which its CEO Dr Ralf Speth has often insisted which JLR will be not inside volume race. “”Our aim will be sustainable, profitable growth,”” says a spokesman. “”Our volume has doubled inside past a few years, in addition to also today we have XE in addition to also F-Pace to launch. We will make progress step by step.””

However a JLR-PSA link, not specifically denied, could be one of the steps, perhaps several years down the road, to provide Jaguar in addition to also Land Rover with the tiny premium cars they could need to finally get on equal terms with the German premium makers.

by via Autocar RSS Feed



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