Jaguar Land Rover recorded a £395 million loss in the last three months, due to declining sales and the impact of a planned Brexit shutdown – but company boss Ralf Speth insists the firm is on track to deliver “sustainable profitable growth” in the future.
The British firm sold 128,615 vehicles in the first three months of the 2019/2020 financial year running from April until June, a 11.6 per cent year-on-year decline. Those sales results in Jaguar Land Rover achieving £5.07 billion of revenue, down 2.8% year-on-year. The pre-tax loss of £395 million compared to £264 million in the same period last year.
As well as declining sales, Jaguar Land Rover’s profits were also affected by it shutting its factories in April as a contingency to coincide with the original planned date of Britain’s exit from the European Union. The results were in line with the company’s outlook for the quarter.
There were some positives, with UK sales for the period up 2.6% year-on-year, while the firm also says that sales in China – where Jaguar Land Rover has struggled in a declining market – rose in June compared with the previous month.
Jaguar Land Rover also said that sales of the Jaguar I-Pace and Range Rover Evoque were up year-on-year, and says the recent arrival of facelifted versions of the Range Rover Discovery Sport and Jaguar XE should help.
The company is undergoing a major £2.5 billion cost-cutting project in a bid to boost profitability, and Jaguar Land Rover claims it has already delivered £100 million in savings.
Speth said that the firm was “in a period of major transformation”, adding: “We will build on our strong foundations and increased operating efficiency to return to profit this fiscal year.”