Can JLR fire for Tata Motors? It first needs to drive home positive free cash flow.
Automobile

Can JLR fire for Tata Motors? It first needs to drive home positive free cash flow.

By Eduardo Saverin

Ratan Tata presents the JLR brands to the audience in Mumbai on June 28, 2009.

Synopsis

JLR lost GBP4 billion in free cash flow during FY18-FY22. It has now decided to sell more profitable products, slashed annual investment by 40% over FY19-FY23, and cut fixed and variable costs. These, and a rising luxury car demand, can help JLR generate positive free cash flow by FY23-end. Is this the beginning of its positive contribution to Tata Motors?

June 2008. As Tata Motors scooped up iconic British luxury car brand Jaguar and Land Rover (JLR) for USD2.3 billion from Ford, it was indeed a badge of honour for the Indian auto industry. But what followed was a bumpy ride, to say the least. Just months after the acquisition, a financial crisis hit the world and the auto industry. During 2009 to 2012, Jaguar could barely sell 50,000 units across the world.The deal piled up an INR21,900 crore

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Eduardo Saverin