Thierry Bolloré has been appointed as the new chief executive officer of Jaguar Land Rover (JLR) effective September 10, 2020, the company said in a statement on Tuesday. He will succeed Ralph Speth, who will continue as non-executive chairman of JLR. Bollore has worked in automotive and auto component companies like Renault, Faurecia and Michelin. He most recently was the CEO of Groupe Renault.
Commenting on Bollore’s appointment, N Chandrasekaran, chairman, Tata Group, said, “I am delighted to welcome Thierry to Jaguar Land Rover. An established global business leader with a proven track record of implementing complex transformations, Thierry will bring a wealth of experience to one of the most revered positions in the industry.”
The appointment of Bollore comes at a time when the world is grappling with the Covid-19 pandemic and JLR has not remained aloof from its impact. Most recently, hit by the Covid-19 pandemic, JLR reported a significantly lower sales, suffering a loss of £501 million in the quarter ended March 31, 2020, and reported revenues of £5.4 billion. The impact on margins was almost £800 million. JLR, which contributes around 78% of the Tata Motor’s overall revenues, had a rough run during the March quarter, washing out the profits made during the second and third quarters of the last financial year.
Recovery in China seen in the early part of 2020 has again been severely hit by the pandemic, and retail volumes suffered a sharp decline in the recently ended quarter. For FY20, China JV reported an Ebitda (earnings before interest, tax, depreciation and amortisation) loss of £19 million against an Ebitda profit of £223 million in FY19. Falling sales in China has been a concern for analysts tracking the company for a while and the expectation from Bollore will be to turnaround the market. Strategy for the UK market will also be watched out for as the market has suffered a double whammy of Brexit and the Covid-19 pandemic.
Meanwhile, there is already a turnaround and transformation agenda to deleverage the JLR business in the works and Bollore will now be expected to drive positive cash flows in an environment of slowing global growth. JLR recently raised its Project Charge+ savings target with an aim to save a further £2.1 billion by FY21 end from £1.1 billion earlier.
Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.