Currently reading: Jaguar Land Rover targets more savings as profits rise
Rising sales in China, popularity of new Evoque and major restructuring programme help British firm to post £318 million profit
James Attwood, digital editor
News
2 mins read
30 January 2020

Jaguar Land Rover posted a pre-tax profit of £318 million in the final quarter of 2019, boosted by the popularity of the new Range Rover Evoque, recovering sales in China and the success of a major cost-cutting drive.

The British firm posted revenues of £6.4 billion in the three-month period, up 2.8% year-on-year despite a 2.3% dip in total sales. That slight decline was offset by the popularity of the new Evoque – with sales up 30% year-on-year – and the recently updated Land Rover Discovery Sport. Jaguar Land Rover was also helped by the continued recovery of its sales in China, up 24.3% year-on-year. 

The £318 million pre-tax profit compares to operating losses of £273 million in the final quarter of 2018. The firm credited the turnaround, which began when it posted a profit in the previous quarter, to the impact of its Project Charge restructuring programme, which it says has reduced operating costs by £154 million and investment by £200 million. Since the programme began, Jaguar Land Rover says it has achieved £2.9 billion in savings, exceeding the original target of £2.5 billion three months ahead of schedule.

The firm has now launched Project Charge+ as the next phase in the restructuring, with the aim to save a further £1.1 billion of cost and cashflow improvements – bringing the total to £4 billion - by March 2021.

“Our improving financial results and the cost and cashflow achievements of Project Charge will support the next phase of our pipeline of exciting new vehicles and technologies, with a choice of outstanding electrified, petrol and diesel powertrains,” said outgoing CEO Ralf Speth, who will step down from his post in September this year.

The firm is optimistic of further growth in the first quarter of 2020, with the new Land Rover Defender expected to go on sale alongside the facelifted Jaguar F-Type.

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Comments
15

30 January 2020

No doubt there'll be the usual anti-JLR sentiment. 

30 January 2020
xxxx wrote:

No doubt there'll be the usual anti-JLR sentiment. 

Should there not be?

30 January 2020
Marc wrote:
xxxx wrote:

No doubt there'll be the usual anti-JLR sentiment. 

Should there not be?

Nope, it's to be expected. I'll await your negativity.

30 January 2020
xxxx wrote:
Marc wrote:
xxxx wrote:

No doubt there'll be the usual anti-JLR sentiment. 

Should there not be?

Nope, it's to be expected. I'll await your negativity.

Depends on what you regard as negativity. I am critical of the way the company has been managed and run. Is that negativity? And if it is, why shouldn't I be critical?

30 January 2020
xxxx wrote:

No doubt there'll be the usual anti-JLR sentiment. 

Fiddled figures - as JLR love to do.

Sure, a small £318 million profit - Tata let JLR keep some money for once rather than creaming it off, big deal.

The success of the Evoque ... they just cut a shift at the plant that makes it. The Evoque is a sales failure, FAR less demand than they were expecting - clearly.

30 January 2020
CarNut170 wrote:
xxxx wrote:

No doubt there'll be the usual anti-JLR sentiment. 

Fiddled figures - as JLR love to do.

Sure, a small £318 million profit - Tata let JLR keep some money for once rather than creaming it off, big deal.

The success of the Evoque ... they just cut a shift at the plant that makes it. The Evoque is a sales failure, FAR less demand than they were expecting - clearly.

Ahh it only seems like April last year you were saying "A denial from Tata, and a coy "we're considering" from Peugeot. It doesn't get much more definitive than that.
JLR are soon to be speaking French.
What interesting times!"

Not that interesting then, as you were wrong!

30 January 2020
Every comment i've read from you has been born of either ignorance, or some sort of hatred for british engineering.

JLR are FACTUALLY selling way above budget for both their new Evoque and Disco sport

Theyve INCREASED production of both vehicles, whilst trimmed fat at their northen plant

30 January 2020

We need a strong JLR!!

30 January 2020
We need a relevant and resilient JLR.

30 January 2020

These profits are all Speths fault :-)

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