Currently reading: Jaguar Land Rover reports "significant impact" of Covid-19 as losses mount
British brands report sales down 42.4% in April-June and £413m pre-tax loss, with another £1bn of cost savings before March 2021 announced
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2 mins read
31 July 2020

Jaguar Land Rover (JLR) has revealed the extent of the effect of the coronavirus pandemic in its quarterly results, with substantial losses and slumping sales. 

The two brands posted combined retail sales of 74,067 for the period from the end of the fiscal year in March to the end of June. That represents a fall of 42.4% year on year. Sales improved month by month, though, with June down 24.9% compared with the same month last year.

Nevertheless, the slump was enough to produce a loss before tax of £413 million from revenues of £2.9 billion. Those losses are far lower than the 2019 annual figure of £3.6bn thanks to the progress of the Project Charge turnaround plan, but they're not far off the £422m loss reported for the entire last financial year.

JLR is keen to stress its liquidity is now "solid", with £647m of new funding secured and £4.7bn in reserve, including £2.75bn cash and investments and £1.9bn of undrawn revolving credit. Free cash flow was negative £1.5bn, around £500m better than previous guidance. 

The UK market was "particularly impacted" due to the pandemic, with sales down nearly 70% reflecting a similar wider industry figure. However, 98% of the company's plants have now resumed production worldwide, with Castle Bromwich still to be opened on 10 August. 

The figures do reveal some positives, though. JLR describes the sales recovery in China and North America as "particularly encouraging", with sales in China down 2.5% over three months and in North America up 2.2% year on year in June. 

However, further cost cutting will come for the remainder of the year. Although £1.2bn of "cost and cash improvements" have been reported in the quarter, JLR's full 'Charge+' cost-saving target for the full year has been raised from £1.5bn to £2.5bn. A total of £6bn in cost-saving measures is predicted by the end of March 2021. It's not yet clear whether this extra £1bn of cost cuts will impact jobs. 

Land Rover notes "building demand" for the new Defender. It actually outsold (in registrations) the majority of the brand's range throughout June, beaten only by the ever-popular Evoque and Range Rover Sport. CEO Ralf Speth said the company "will emerge from the pandemic with our most advanced product line-up yet, and with the financial and operating measures in place to return to long-term sustainable profit." 

The quarterly results announcement follows the confirmation earlier this week of former Renault CEO Thierry Bolloré taking over from Speth as CEO in September. 

Read more

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15

31 July 2020

This great british brand has the support of an entire nation.We have more jags and land rovers on the road than any other vehicle!

31 July 2020

While Land Rover may be doing fairly well for now, Jaguar are pretty much on their knees, as far as model sales are concerned. Big discounts are available on even the relatively new E-Pace and F-Pace, and the I-Pace is the only genuinely forward looking product line in the entire range.

Good luck to the new guy, he is certainly going to need to shake up the company and get some new advanced models.

31 July 2020
Bimfan wrote:

While Land Rover may be doing fairly well for now, Jaguar are pretty much on their knees, a....

here we go...  One day the gloaters may be right but until then.

31 July 2020

"Big discounts are available on even the relatively new E-Pace and F-Pace"

A certain price comparison website tells me they can get me an average saving of £5,898 off the price of a new X3 (launched 2018), compared to £4,102 off the price of an F-Pace, which was launched a year earlier. As for the E-Pace (launched 2017), they can only save me £3,010 on average, whereas they can get me a discount of £4,350 on the X1 (launched 2015) and £5,217 (launched 2018) on the X2. Seems that BMW are being discounted at higher rate than Jaguar. Not sure what your point is?

You are right that the I-Pace is genuinly forward looking. It has been around since 2018 and has a better range than the iX3 that BMW has only just announced!

31 July 2020
SmokingCoal wrote:

"Big discounts are available on even the relatively new E-Pace and F-Pace"

A certain price comparison website tells me they can get me an average saving of £5,898 off the price of a new X3 (launched 2018), compared to £4,102 off the price of an F-Pace, which was launched a year earlier. As for the E-Pace (launched 2017), they can only save me £3,010 on average, whereas they can get me a discount of £4,350 on the X1 (launched 2015) and £5,217 (launched 2018) on the X2. Seems that BMW are being discounted at higher rate than Jaguar. Not sure what your point is?

You are right that the I-Pace is genuinly forward looking. It has been around since 2018 and has a better range than the iX3 that BMW has only just announced!

Thank you, for putting that into perspective . . . !!

 

31 July 2020

You would not get that off a JLR vehicle the Evoque is a few percent and the best being an XE or XF but no way near th eMerc or Audi BMW levels

31 July 2020

Sounds like the Defender is doing huge business. Let's see how the Grenadier does in comparison.

It is true discounts are much harder to come by on JLR cars. BMW it seems to me gives the biggest discounts going, look how their second hand values drop

31 July 2020
Comparing sales with the Boche is futile. JLR, whilst seeing a very slight dip due to the damn virus will bounce back stronger than ever, leaders in their field. The new Defender is already selling faster than it can be built, premium will always prevail!

31 July 2020

Sorry to say but the German luxury brands can discount their products until the others go bust. They have the financial backing & reserves that JLR hasn't got, & they will do anything to get their products moving & keeping their vast production facilities churning over. 

1 August 2020

You can get more than 15% off a Benz GLC. That’s more than £6000. However, the point made that the bigger companies can discount further is a good one. Now is the time to buy a fast petrol XE. An F-Type with 4 doors for £25k! Pure motoring pleasure. 

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