Third quarter profits of £41.3 million
30 November 2009

Jaguar Land Rover has returned to profit thanks, it says, to aggressive cost cutting and the popularity of new models.

Tata Motors reported JLR made an operating profit of £41.3 million in the three months to 30 September, compared with a loss of £34m in the same quarter a year ago. Its net loss narrowed to £60m from £240m.

Jaguar Land Rover sales rose by 23 per cent to 44,300 vehicles in the previous quarter. The highest rise in sales was in Britain, where the grew 34 per cent to 14,400 vehicles. North American sales dropped 7.3 per cent to 9600, while Chinese sales grew 2.1 per cent to 3400.

Last month, JLR secured a £175m loan from the State Bank of India, after negotiations for British government backed help floundered.

Recently JLR also announced that it plans to close one of its West Midlands factories by the middle of the next decade, outsource production overseas and close its final salary pension scheme to new members.

Jaguar has scaled back the use of contractors and temporary workers, frozen wages at its sites in the Midlands and Halewood, in Liverpool, and cut pay for new staff by up to 20 per cent.

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Comments
10

30 November 2009

-good on Jag and good on TATA

-i hope Mini will be okay (i know not a TATA/Jag etc car) but i just hope for all the UK jobs it will be fine with all its new and growing competition - i still think BMW will sell mini

-the question is whos going to buy it!

30 November 2009

I dont think BMW will sell of Mini, especially considering the models they have lined up for launch.

Coming back to the topic, Good on JLR but its just a drop in an ocean of losses. Also they did have the short term benefit of the Scrappage scheme.

Hopefully things will keep improving once the XJ and LRX hit the roads.

30 November 2009

[quote Autocar]Jaguar Land Rover has returned to profit [/quote]

Back in profit??? When was it last in profit? I have no recollection of the word profit being used in combination of either Jaguar or Land Rover.

If JLR are making a profit, big congratulations are deserved all round.

30 November 2009

[quote Scoobman]

[quote Autocar]Jaguar Land Rover has returned to profit [/quote]

Back in profit??? When was it last in profit? I have no recollection of the word profit being used in combination of either Jaguar or Land Rover.

If JLR are making a profit, big congratulations are deserved all round.

[/quote]

Indeed. Still it's good news for Jag/LanRover. They will need to build on this with the new XJ and probably a "proper" replacement for the X-type.

30 November 2009

[quote Scoobman]Back in profit??? When was it last in profit? I have no recollection of the word profit being used in combination of either Jaguar or Land Rover.[/quote]

Actually if you check your recent history you'll see that Land Rover had been in profit during 2005 - 2007. In fact in 2007 Land Rover made $1 Billion profit for its then US parent Ford.

The profits were not as visible as they were reported as part of Ford's Premier Auto Group (PAG). Where LR was actually doing better than Volvo, who in 2007 made a loss.

30 November 2009

[quote Sajid Yacoob]Actually if you check your recent history you'll see that Land Rover had been in profit during 2005 - 2007. In fact in 2007 Land Rover made $1 Billion profit for its then US parent Ford. [/quote]

Also as I recall Land Rover was a commercial sucess for Rover group. Jaguar with it's outdated factories and models was the real problem for Ford but now that's charging back to profitability thanks to the money Ford spent fixing it. Indeed JLR is now the most sucessfull European premium car maker outside of Germany.

As for this point about the scrappage scheme, let's see who's sales drop the fastest when it's withdrawn. The likes of Nissan and Ford or JLR? Somehow I think JLR will be fine but Fiat and Nissan? Hmmm. Isn't it funny how we can find cash for Adam Opel GMBH but not for our own British brands....

1 December 2009

[quote TStag] As for this point about the scrappage scheme, let's see who's sales drop the fastest when it's withdrawn. The likes of Nissan and Ford or JLR? Somehow I think JLR will be fine but Fiat and Nissan? Hmmm. Isn't it funny how we can find cash for Adam Opel GMBH but not for our own British brands....[/quote]

I doubt there were many people swapping 10yr.old fiestas for shiney new XFs', so the end of the scrappage scheme will hardly register on JLR sales. Agreed with the above.

1 December 2009

[quote TStag]Isn't it funny how we can find cash for Adam Opel GMBH but not for our own British brands....[/quote] Why would they need government support if they're in profit?

1 December 2009

[quote CapsLock]- i still think BMW will sell mini[/quote] Why? Mini's very successful and it's part of a BMW strategy to sell premium small cars.

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