Land Rover and its Business System Case Study Example | Topics and Well Written Essays - 3000 words - 1

Land Rover and its Business System - Case Study Example Now finally the Land Rover is working under the hands of Tata Motors from 2008. (Land Rover confirms grant offer to build a new model, March 2009) (Land Rover Company Profile, April 2009). At present, the company is all set to start its revolutionary project of making the smallest, lightest and most fuel-efficient car that Land Rover has ever built, based on the LRX concept vehicle displayed in the auto show at Detroit last year. The project has got the grand welcome by the UK government by a stimulus package of  £27 million in the month of April, as a support to the UK auto industry whose sales has gone down by 30% in the second half of 2008 and as per the analysis report the situation yet takes some more time to get back to the same level. Phil Popham, the managing director of Land Rover, said: "At the moment we are planning on the assumption that it will be a couple of years before the industry starts to improve drastically, and maybe five years before returning to the pre-credit crunch trends we were seeing globally in the motor industry." (Arnott S., April 2009). The project is going to cost around  £400 million and is to be started by the year-end in Halewood, on Merseyside. The project is primarily taken up due to the shift of the global auto industry towards green cars to check the global warming and also is a part of raising efforts towards making more fuel efficient and cost effective cars. The prevailing economic recession which has made consumers more cautious about their spending and other related factors have driven the demand for lighter, relatively low priced, fuel efficient and environmentally friendly cars. Under European law, automakers have to cut carbon emission of new vehicles by 19% within a period of five years (Arnott S., April 2009). But, Jaguar-Land Rover under sustainability programme is expecting to cut the same by 25%.  The parent company of Land Rover has already taken the initiative to make the world’s lowest cost car â€Å"Nano† (Scanlon J., March 2009).