LONDON -- Jaguar Land Rover is raising investment by about a quarter over the next three years as part of a plan by the automaker to be able to offer electrified versions of all its nameplates.
The automaker will invest 13.5 billion pounds ($18 billion) during the period, according to a presentation to investors Monday. That's a 26 percent increase from 10.7 billion pounds over the three previous years through March 2018.
The higher spending comes even as the automaker said sales and revenue in the year to March "did not grow as much as we planned" because of customers' wariness about buying diesel-fueled vehicles in the U.K. and mainland Europe. The company said margins and profitability were "well below" internal targets and led to negative cash flow after investment.
JLR is increasing spending to be able to produce by 2025 three versions of all its nameplates, including those powered by fossil fuels, batteries or a combination of both, according to the presentation. The company will only offer full-electric versions if there is enough customer demand, a spokesman said. This year, Jaguar began sales of the I-Pace crossover, the brand's first full-electric nameplate.
Diesel vehicles accounted for nearly 90 percent of the company's European sales in the U.K. and Europe in the fourth quarter of 2017, a high level in light of the unfolding scandal about emissions that erupted in 2015 at Volkswagen Group and has cooled customer demand.
All six of JLR's U.K. manufacturing platforms at plants in the West Midlands and in Halewood, Merseyside, will be retooled to produce vehicles with the new engines, the spokesman said.
JLR has said every vehicle it launches starting in 2020 will have an electrified element, though this may mean plug-in hybrid vehicles rather than full-electric ones in some cases.
The company also said it plans to open a software, information technology and engineering center in Manchester, northwest England, to work on connected-car technology.