Jaguar Land Rover's North American arm is conserving cash by suspending co-op advertising for at least 90 days. It's also putting roughly 150 employees — 40 percent of its U.S. work force — on paid leave for a month.
"In light of a partial suspension of our U.S. business operations and a continued decline in revenue, the company has placed a number of employees whose positions are significantly impacted by COVID-19-related circumstances on paid leave for one month, effective May 1, during which their pay and health care benefits will be maintained in full," Jaguar Land Rover said in a statement emailed to Automotive News.
The company's senior leadership in the U.K., including CEO Ralf Speth, has taken pay cuts as the automaker grinds through the stay-at-home orders that have closed plants, tech centers and dealerships.
"In coordination with our Retailer Cabinet, we have temporarily suspended the co-op advertising program for April-June to minimize advertising expenses during the slowdown in business and support retailers' cash flow. It will be evaluated with the retailers and resumed when agreed upon," said JLR, which has its North American headquarters in Mahwah, N.J.
Jaguar Land Rover's plants are scheduled to start coming back online May 18. The company is in the midst of launching one of its most important vehicles, the 2020 Land Rover Defender. U.S. sales are still expected to start in late June.