Jaguar Land Rover reports record £3.6bn losses - The Solihull Observer

Jaguar Land Rover reports record £3.6bn losses

Solihull Editorial 21st May, 2019 Updated: 21st May, 2019   0

JAGUAR Land Rover has reported a record annual operating loss of £3.6billion and claims sales remain weak in its core growth market.

The luxury car manufacturer, which has its headquarters in Whitley, Coventry, said it made a pre-tax loss of £358million for the 2018/19 financial year before exceptional items.

The company has repeatedly spoken of problems including diesel taxation, Brexit uncertainty and falling demand in China.

The final quarter of the 2018/19 financial year was an encouraging one for JLR, it says, as it saw the company generate pre-tax profits of £269million.

JLR, which has factories in Solihull, Castle Bromwich and Gaydon, said it sold 578,915 vehicles in the last financial year.

That represents a fall of 5.3 per cent compared to the 2017/18 financial year.

Revenues of £7.1billion were down £421million year-on-year as growing demand in key markets such as the UK and US helped offset weaker China market conditions.

Dr Ralf Speth, JLR chief executive said: “Jaguar Land Rover is focused on the future as we overcome the structural and cyclical issues that impacted our results in the past financial year.

“We will go forward as a transformed company that is leaner and fitter, building on the sustained investment of recent years in new products and the autonomous, connected, electric and shared technologies that will drive future demand.

“Jaguar Land Rover has been one of the first companies in its sector to address the multiple headwinds simultaneously sweeping the automotive industry.

“We are taking concerted action to reduce complexity and to transform our business through cost and cash flow improvements.

“The company has returned to profitability in the fourth quarter and already delivered £1.25billion of efficiencies and savings.”

The company launched a £2.5billion turnaround programme earlier this year and has spent more than £149million on redundancy costs to date.

The turnaround programme has already delivered £1.25billion in cost savings and efficiencies, JLR said.

JLR said plans have been announced to assemble electric drive units and battery packs in the UK and invest in the production of the next generation of flagship Range Rover models at Solihull.

Work is underway at Gaydon, UK, to centralise Jaguar Land Rover’s automotive design and product engineering activities. New technology centres have been created in Ireland, in Manchester and in Hungary.

Since the beginning of 2019 thousands of jobs have been lost across all JLR sites, with many expected to hit the West Midlands.

Last year 1,000 temporary contract workers were cut from the Lode Lane plant and workers at the Castle Bromwich site were told to switch to a three day week in the lead up to Christmas.

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