Jaguar Land Rover reveals drastic savings plan as sales slump - The Solihull Observer

Jaguar Land Rover reveals drastic savings plan as sales slump

Solihull Editorial 31st Oct, 2018   0

JAGUAR Land Rover sales have slumped as the company continues to struggle due to market uncertainty and falling demand for diesel vehicles.

The West Midlands car manufacturer on Wednesday (October 31) reported financial results for the three-month period ending September 30.

Retail sales declined 13 per cent year-on-year to 129,887 vehicles for this period, which the firm has attributed to challenging market conditions in China.

This follows import duty changes and escalating trade tensions between China and the United States.

The company recorded a pre-tax loss of £90million for the period, compared to a profit for the same time-frame a year ago.

It also announced revenues of over £5.6billion and a drastic cost-cutting programme.

The firm says sales in Europe were affected by continuing weakness in diesel demand after increased taxation and regulation.

It says this also affected UK sales along with continuing uncertainty relating to Britain’s exit from the European Union.

JLR chief executive Ralf Speth has repeatedly warned of the disastrous consequences of a no-deal Brexit scenario, which could jeopardise thousands of jobs.

He said: “In the latest quarterly period, we continued to see more challenging market conditions.

“Our results were undermined by slowing demand in China, along with continued uncertainty in Europe over diesel, Brexit and the WLTP changeover.

“Given these challenges, Jaguar Land Rover has launched far-reaching programmes to deliver cost and cashflow improvements.

“Together with our ongoing product offensive and calibrated investment plans, these efforts will lay the foundations for long-term sustainable, profitable growth.”

The company announced a two-week shutdown in production at its Lode Lane factory in Solihull, which began on October 22.

The news came weeks after 2,000 agency staff members at JLR’s Castle Bromwich factory were told they will switch to a three-day week until Christmas.

In June it switched production of its Discovery model from Solihull to its new factory in Slovakia – which started production last week.

The company also announced the lay off of 1,000 workers across its West Midlands’ plants in April.

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