It is a bit odd that this kind of topic is now being seriously discussed,” he told Reuters. However, he added: “It is important for the whole industry.” Jaguar Land Rover sales have remained flat over the past few years at around 330,000 units a year, having peaked at more than half a million in 1980s. The carmaker sold 4,300 Jaguar SUVs in Britain in the first quarter of 2019, the same level as the same period a year ago, and a decline of more than 13 percent compared to the first three months of 2018. “Sales of Jaguar sports utility vehicles have been down and this was not expected,” said one industry source. “It does look like there will be some additional capacity within the JLR production system for the next few years.” ROBO-CARS AND PROTECTION Ian Hoban, Jaguar Land Rover’s global sales and marketing boss, said it was too early to talk about production cutbacks as he hoped it would be able to hold the line on output at around 330,000 a year. Slideshow ( 4 images ) Hoban said he expected to make a decision on the Jaguar-Land Rover new headquarters before the end of this year, with Birmingham or Berlin favored for an unspecified amount of building work, while other options remained on the table. He said Jaguar Land Rover was targeting new products in the coming years, including one due in 2023 that could raise total annual production to more than 5 million vehicles. Hoban’s predecessor, former CEO Ralf Speth, was replaced last month after a troubled stint which saw sales fall at Jaguar Land Rover, JLR’s biggest unit. Speth had admitted the firm needed to be more aggressive with its product strategy and make sure new technology and systems were rolled out on a global scale. But Hoban has acknowledged the need to strengthen the product line, particularly with SUVs, which have made up about half of sales in Britain in recent years, while its home market Europe needs new products. Jaguar Land Rover is currently developing a new battery-electric SUV which will be launched by 2022. But Jaguar Land Rover has suffered from intense competition in its home market Britain and Europe, and Chief Executive Officer Ralf Speth said he would look to raise the firm’s profit margin to 15 percent or more over the medium term. To do so, the company needs to increase production in Britain but it is also looking at whether a change of ownership structure could give the company access to larger economies of scale. Honda, which owns 20 percent of JLR, is in talks to sell the remaining stake to fund its partnership with Italy’s Fiat Chrysler, which owns the rest. Fiat Chrysler also owns a 15 percent stake in the company. M&A DEAL RUMORS A source told Reuters on Wednesday that JLR had been approached by a potential buyer regarding a “pre-IPO friendly” deal but that no formal discussions had yet taken place. Jaguar Land Rover declined to comment. Jaguar Land Rover has been approached by several parties including Chinese firms interested in taking over the company, but no offers have been made. The company said in March that its strategy to cut spending would not change. Hoban and other senior executives were moved aside in April following pressure from a JLR board and the firm’s main investors, Indian investment firm TPG and China’s Tencent Holdings, to make changes. In May, JLR posted its biggest operating loss in five years at $1.3 billion. The firm said in May its global cash pile rose by around 7 billion pounds ($9.3 billion) to more than $20 billion after a better-than-expected operating performance. Ian Fletcher, a London-based analyst at Liberum, said even at a lower production rate Jaguar Land Rover may still generate enough cash to meet spending plans. “A slight contraction in JLR’s ability to output cars could be countered by an increase in its ability to invest in new products,” he said.