JLR aims to overtake rivals, says Speth
Jaguar Land Rover needs to develop “something exceptional” to move ahead of rival brands BMW and Audi. That’s the view of the chief executive of the Warwick-based manufacturer, Dr Ralph Speth, who spoke to Insider. Speth said that with the engine world in such a flux – with hybrid, electric and hydrogen driven cars – he thinks developing JLR's powertrain technology is “key” to becoming exceptional. “It is a £500bn world market. It is a massive opportunity,” he said.
JLR recently announced plans to recruit an additional 1,000 engineers, alongside a link-up with Warwick Manufacturing Group (WMG), to ensure the company is ahead of the competition.
Speth praised the approach of WMG’s founder Lord Kumar Bhattacharyya, describing him as “the man who had the vision”.
By working with WMG and encouraging suppliers to innovate, a critical mass would be engendered said Speth. “Once we get R&D momentum we will go forward with real pace and power,” he added.
JLR turns over about £7bn in revenues - the three quarters of 2010/11 have so far seen pre-tax profits of £788m.
However, Speth is well aware there is a long way to go.
“We depend very much on the currency - commercially it is a very important issue for us,” he said. “But at the moment we can breathe.”
The company, which has sites in Coventry and Warwick, invests on average more than a £1bn a year in research and development. But Speth still admits that competitors such as BMW and Audi are much bigger, and have much deeper pockets.
However, with the engine world constantly changing, with demonstrations of electric cars, hydrogen driven cars and hybrid cars, Speth believes that developing powertrain concepts could be the key to catching up with its rivals.
Speth suggested that if JLR could come up with inventions which break the mould, which excite the customer, it can get the edge it needs.
He said: “We need to develop something exceptional. Powertrain is the key and it is totally changing. It is a £500bn world market. It is a massive opportunity.”
When discussing the management skills and work ethic of British employees compared with Speth’s native German counterparts, he praised the commitment of the West Midlands workforce.
He said: “Our employees understand the message. Everybody is eager to work, everyone is eager to earn money for themselves and their family. Management is giving leadership. And we have a responsibility to the wider community.
“We are talking co-operation not conflict. I don’t see a difference between employees on the assembly line and employees in the boardroom. This is a team approach. We have seen unbelievable commitment. There is a passion there and I take my hat off to them.”
The full version of this interview can be seen in the April edition of Midlands Business Insider.
