Jaguar Land Rover plunge in to £90 million LOSS in Q3
Jaguar Land Rover suffered a £90 million loss in Q3 after a big drop in sales in China added to diesel and WLTP woes. Cost cutting planned.
The biggest culprit is a 13.2 per cent drop in sales in China as import duty changes and trade tensions rock the market, but a drop in sales related to WLTP testing and the drop in sales of diesel-engined cars (which isn’t just a JLR problem) hit too as, according to JLR, has uncertainty over the final Brexit deal.
As a result, JLR is embarking on a range of cost-cutting measure to ensure profitability is maintained, which will total £2.5 billion over the next 18 months including a spending reduction of £500 million.
So far, despite some recent job losses at JLR, and shutdowns to reduce inventory, JLR aren’t planning job losses, although the shift of a chunk of production from the UK to their new Plant in Slovakia – beyond the already announced shift of Discovery production to Nitra – seems certain, and it’s hard to see how that won’t impact UK jobs.
Ralph Speth, JLR CEO, said:
We remain focused on delivering improved profitability and cashflow in the second half, while pressing ahead with our product offensive. In the latest reporting period, we introduced important new models including the Jaguar E-PACE and the revolutionary electric I-PACE. Production has begun at our new plant at Nitra, in Slovakia. We have also continued our development of autonomous, connected and electrified products and services, which will shape our strategy for the future.
JLR say the expect their full year results to recover to a break-even position.
mark geller says
They have been hit with everything. the diesel crisis, Brexit, China. Still gotta love the cars. They will rise above this like Volvo. The product is great. This is a tough time for all manufacturers, some more than others.