Member Article

Jaguar Land Rover Success Was Built on Turnaround

Jaguar Land Rover’s current success was built on an award-winning turnaround, according to the Institute for Turnaround.

Jaguar’s recent good news that it will create 1,100 new jobs locally was built on the back of an award-winning turnaround that was celebrated at the Institute for Turnaround (IFT) Awards last November. An IFT member picked up the Institute’s ‘Rising Star’ Award in 2011 – in part for their role in turning around Jaguar Land Rover.

Following Jaguar Land Rover’s difficulties in 2008, a Big Four team of turnaround professionals worked on a cost reduction plan. This included a long running cash management programme that ensured survival, and generated cash for investment in new products to drive the turnaround. They also picked up a number of strategic, operational and financial work-streams for the Board during the turnaround.

IFT Chief Executive Christine Elliott said,

“Jaguar’s management is to be commended for having had the maturity and foresight to supplement its team with accredited professionals to help them get this prestigious brand and economically significant company in good shape for the future it is now enjoying.

Jaguar in no way resembles the zombie companies that are out there, in limbo, unable to pay more than the interest on their debts; unable to attract fresh capital and without a plan that will return them to viability. The government, through the backs, effectively owns the economic interest in these companies. If we are not to see a disastrous swathe of job losses and supply chain damage, the parties who control these companies need to start acting like the owners they are and take the necessary decisions to free them from zombie purgatory.“

IFT Midlands and West Chairman Brendan McGeever said,

“The Jaguar announcement came after Jaguar workers backed a crucial blueprint in favour of new workplace efficiencies, including some compulsory Saturday working. This is great news for the Jaguar workers, the West Midlands and the wider UK economy.”

This was posted in Bdaily's Members' News section by Institute for Turnaround .

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