Jaguar Land Rover, one of the UK’s leading automotive manufacturers, has announced its plans to cut around 4,000 jobs, which accounts for nearly 10% of its global workforce. This is part of a turnaround program aimed at achieving £1.7 billion in cost savings. The company is facing intense global competition and external economic pressures while continuing to invest billions in electrification, manufacturing, and future products.
In light of these challenges, EVTEC Automotive, a UK Tier 1 automotive manufacturer and a long-standing supplier within the Jaguar Land Rover supply chain, believes that suppliers must take responsibility for removing avoidable costs and volatility from the automotive supply chain. This is particularly important for businesses within the wider supply chain of Jaguar Land Rover, as the resilience of suppliers is crucial for the success of the company.
EVTEC Automotive CEO, David Roberts, emphasizes the importance of this message, stating, “Resilience can’t only be the OEM’s responsibility.” He further explains that the company learned this lesson the hard way after the 2022 energy crisis, which caused a significant increase in energy costs for their energy-intensive manufacturing operations. This led to discussions with Jaguar Land Rover about introducing energy price escalation and de-escalation arrangements into their contracts.
To avoid being in a similar position in the future, EVTEC Automotive started building a private energy market around its own manufacturing requirements. This strategy combined renewable generation, long-term energy arrangements, and the active shaping and balancing of supply against the company’s actual factory demand. This approach proved to be successful in stabilizing energy costs, protecting margins, and providing long-term security for EVTEC Automotive.
CEO David Roberts explains the significance of this strategy, stating, “Securing our own energy future protects EVTEC – but it also protects JLR. It removes unnecessary volatility from their supply chain and allows both businesses to concentrate capital on products, people, technology, and growth.”
EVTEC Automotive’s success in solving their own energy problem inspired them to take their solution to the wider manufacturing market through e2 Energy Partners. This company grew out of the private energy strategy originally developed by EVTEC Automotive and now offers a model that can be fully funded with ZERO CAPEX from the manufacturer. This could result in saving tens of millions of pounds in energy costs over a 15-year period.
Stephen Todd, Head of Partnerships at e2 Energy Partners, explains the benefits of this model, stating, “This really changes the game for suppliers and high-energy users. For years, manufacturers have accepted energy volatility as something they simply have to live with. But if energy is one of the biggest costs in your business, hoping is not a strategy.”
He further adds, “What EVTEC proved is that you can take far greater control. You can protect margin, create long-term cost certainty and build energy security around the actual needs of the factory. And the biggest shift is that you can do it without tying up millions of pounds in capital.”
The success of EVTEC Automotive’s private energy model demonstrates the potential for other high-energy manufacturers to secure their energy future while keeping their capital focused on production, technology, people, and growth. This could lead to a stronger supply chain and more resilient manufacturers, which is crucial for the success of companies like Jaguar Land Rover.
The lesson from EVTEC Automotive is clear: the best time to solve an energy crisis is before the next one arrives. By taking responsibility for removing unnecessary risks, suppliers can contribute to the recovery of Jaguar Land Rover and the wider British manufacturing industry.
For media enquiries, please contact f.howell@e2energypartners.com or visit www.e2energypartners.com.
About EVTEC
EVTEC Automotive is a UK Tier 1 automotive manufacturer and a long-standing supplier within the Jaguar Land Rover supply chain.
About e2 Energy Partners
e2 Energy Partners grew out of the private energy strategy originally developed to protect EVTEC’s manufacturing operations following the 2022 energy crisis. The model has subsequently been made available to other high-energy users, enabling manufacturers to pursue long-term energy security through fully funded energy infrastructure with zero upfront CAPEX.
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This news story was distributed by https://pressat.co.uk/
