British firm says drop in Chinese demand is key reason for 13.2% decline in sales in previous financial quarter
James Attwood, digital editor
31 October 2018

Jaguar Land Rover (JLR) boss Ralf Speth says the firm will launch a series of cost and cash flow improvement programmes to boost profits after posting a pre-tax loss of £90 million in the previous financial quarter.

The British firm says that lower sales, primarily in China, were the key reason for the result. JLR sold 129,887 vehicles between July and September – a 13.2% decline on the same period last year, resulting in revenues of £5.6 billion.

JLR said the bulk of the slump in sales was due to the market conditions in China, where the recently begun trade war with the US has created consumer uncertainty.

European and UK sales were also down, for which JLR cites the combined impact of the fall in diesel demand, the introduction of the WLTP emissions regulations and the uncertainty over Brexit. Speth has been outspoken on the impact that Brexit has already had on the company.

In response to those challenges, Speth said JLR “has launched far-reaching programmes to deliver cost and cash flow improvements”. He added: “Together with our ongoing product offensive and calibrated investment plan, these efforts will lay the foundations for long-term sustainable, profitable growth.”

JLR said that the initiatives would deliver profit, cost and cash flow improvements totalling £2.5bn over the next 18 months, in part by reducing planned spending in the next two financial years by £500m to £4bn.

The firm recently began a two-week shutdown at its Solihull plant and is currently operating a three-day week at its Castle Bromwich facilitywhich produces Jaguar's XE, XF and XJ saloons.

It added that it expects its financial performance to improve in the next two financial quarters and anticipates pre-tax profits for the current financial year to “be about break-even”.

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JLR's product offensive includes launching the Jaguar I-Pace electric SUV in North America, China and other markets, along with the E-Pace small SUV in China. The firm is also gearing up to launch a new Land Rover Defender.

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Comments
38

31 October 2018

It's difficult enough to design and build cars, then find a market and promote them, without the self-inflicted Brexit problems on top.

 

Be in no doubt that no version of Brexit leaves Britian better off.

 

31 October 2018

While I agree that Pre-Brexit uncertainty isn't helping JLR at the moment, I do think their problems are deeper than just that. As a long time JLR owner (F-Type, old model XF and Evoque) I'm unlikely to purchase from them any time soon.

1. I love the F-Type but my dealer is appaling, I'll keep it while I can get it looked after by a specialist but not after that. JLR are also pretty poor - I had to pay for my centre vent to be fixed bang on 3 years even though it's been fixed every annual service before. It's plainly is badly designed and needs a modification (more metal cogs, less plastic ones?)

2. I still prefer my old 120k mile XF to the new model both inside and out.

3. When we recently swapped the Evoque we ended up with a new Volvo which in my opinion is just simply better all round than anything Range Rover could offer, and with a sales&service centre who actually appear to care and want your business.

Brexit I'm sure is part of the problem, but JLR just isn't competitive at the moment, and that's from someone who's bought 6 of their products in the last 15 years.

Rant over!

31 October 2018

Would that be mrking as in the big Volvo dealership chain by any chance ?

 

Isuggest you take any of teh Volvo's to Eastnor and take them around teh track there and then say that Volvo makes better cars, because off road, you can not beat the LR/RR products, and thats proven time and again - our Velar and Discovery 5 are two of the best cars we have ever owned, and we have had (and still do (for some of them) Bentley's, Mustang, Jags, Audi's MG's, VW's Rover's, More Audi's, Mercs and so on, yet as far as we are concerned, when we change the two Big cars, they will be with other Range Rovers, infact, we are looking at the new Two door Rangie, but it might be a compromise we cant accept.I have spoken with independant drivers, (Not associated with any brand) and they all rate the LR products highly, yes the Volvo's are nice, but are not any good for off road or high speed work, which is why the police no longer have them.

 

1 November 2018
jonboy4969 wrote:

Would that be mrking as in the big Volvo dealership chain by any chance ?

 

Isuggest you take any of teh Volvo's to Eastnor and take them around teh track there and then say that Volvo makes better cars, because off road, you can not beat the LR/RR products, and thats proven time and again - our Velar and Discovery 5 are two of the best cars we have ever owned, and we have had (and still do (for some of them) Bentley's, Mustang, Jags, Audi's MG's, VW's Rover's, More Audi's, Mercs and so on, yet as far as we are concerned, when we change the two Big cars, they will be with other Range Rovers, infact, we are looking at the new Two door Rangie, but it might be a compromise we cant accept.I have spoken with independant drivers, (Not associated with any brand) and they all rate the LR products highly, yes the Volvo's are nice, but are not any good for off road or high speed work, which is why the police no longer have them.

31 October 2018

its not difficult to design, build and sale cars all you need is a good product and talented people, something JLR haven’t got. 

31 October 2018

Oh leave off! You never stop.

31 October 2018

The UK can be up to £100 billion a year better off overall if every advantage of BREXIT is used to the maximum possible.

The British taxpayer will be better off after BREXIT if certain policies are implemented.

Symanski won't tell you just how much being in the EU costs the British taxpayer each year.

Symanski doesn't seem to care about British freedom or British democracy either.

31 October 2018
max1e6 wrote:

The UK can be up to £100 billion a year better off overall if every advantage of BREXIT is used to the maximum possible.

The British taxpayer will be better off after BREXIT if certain policies are implemented.

Symanski won't tell you just how much being in the EU costs the British taxpayer each year.

Symanski doesn't seem to care about British freedom or British democracy either.

 

Net we pay £ 8bn to the EU, and for that we get access to a market that's worth nearly £ 300bn.   That's great value when you consider PM May wants to give £ 4bn to South Africa for £ 18bn of trade.

 

You'd have to list the "Advantages of Brexit".   You could also write to PM May to let her know too as she has never stated any of them.   In fact, both Hammond and May have told you that taxes will have to rise to pay for Brexit.

 

"British freedom" was never under threat from the EU, but you'll be left with fewer rights and freedoms after Brexit.   If anything the EU has championed freedom, and Brexiteers want to take those away from you.

 

"British democracy" isn't served by harming the country to satisfy the liars and cheats like Boris, Mogg, Gove, and Farage.   Even Farage admitted they lied on the morning of the result!   Now you know more facts about Brexit isn't a good idea to ask for confirmation that Brexit is what the country wants?   Especially when we have felt part of the costs of Brexit now.

 

31 October 2018

Except their current issues are down to low China sales, Not Brexit. I cannot stand cnts like you who will try and divert an issue completely separate to the UK domestic problems, for your own zealotry.

 

However I felt about brexit before, the way that the EU has behaved since (basically holding us to randsom) and attitudes of people like you, make me think thank fk we are going. It shows how utterly detached you are from not only working class people but I suspect other large sections of the UK population, that you think people were persuaded by the likes of Mogg and Boris.

 

I can tell you've NEVER had to wait for a council house, you;ve never had to put your kid in a packed childrens school and you've never had to wait in a crowded GP surgery. You're an entitled piece of shit and I despise people like you. If the EU is so awesome, pack up and move the Fk over to brussels you spineless cnt.

3

3 November 2018

BigMitch I’ve just become a fan of yours. Brilliant post. 

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