As Sales Slump, Jaguar Land Rover Moves to Plug Leaks

by Steph Willems

Published: November 1st, 2018

as sales slump jaguar land rover moves to plug leaks

It’s not oil dripping onto a snooty cobblestone driveway this time around — it’s cash. Following the release of its latest quarterly fiscal report, Jaguar Land Rover announced a plan to plug the leaks threatening its existence.

The automaker cites declining sales as the reason for a 10.9 percent drop in revenue for the three month period ending September 30th, with buyers in China, the U.S. and Europe taking much of the blame. Globally, sales fell 13.2 percent in the last fiscal quarter, with the total volume of vehicles sold by both brands falling below the number of Chevy Silverados sold in the U.S. last quarter. Jag needs to fatten up those seals.

It’s certain that Tata Motors, JLR’s owner, won’t be pleased to hear about the automaker’s pre-tax loss of $116 million. North America’s hate-on for cars, Europe’s distaste for diesels, and China’s current car-buying mood swing all conspired to lower volume across the globe.

Don’t worry, though — there’s belt-tightening in the works.

“Given these challenges, Jaguar Land Rover has launched far-reaching programmes to deliver cost and cashflow improvements,” said JLR CEO Ralph Speth in a statement. “Together with our ongoing product offensive and calibrated investment plans, these efforts will lay the foundations for long-term sustainable, profitable growth.”

The company calls the two initiatives “Charge” and “Accelerate.” Between the two efforts, JLR hopes to solve short- and long-term cashflow problems.

“Total profit, cost, and cashflow improvements of £2.5 billion over the next 18 months are targeted. As part of this, the company has taken action to reduce planned spending by about £500 million to £4 billion per year this financial year and next,” the company stated.

Product comes into the picture, too. While JLR’s long-term future remains hazy (the Jaguar brand might go all-electric), in the near term it plans to launch the electric I-Pace SUV in China, bolstered by the gas-powered E-Pace small SUV. Late last month, the automaker opened its new Slovenian assembly plant, home to the Land Rover Discovery.

[Image: Jaguar Land Rover]

#Finances #Jaguar #JaguarLandRover #JLR #LandRover #Sales

Steph Willems

More by Steph Willems

Comments

Join the conversation

2 of 23 comments

Redapple on Nov 02, 2018

I leased a new LR4 years bad. Nice rig. But I Visited the service department more than when i had a new Cheby. Now with the horrid new styling, I have no interest in a Land Rover product. None.

Like Reply
BuckarooBanzai on Nov 03, 2018

What a mistake Land Rover made by attempting to modernize the fine looks of the LRx. The new Discovery redesign is just plain horrible--it looks like a PT Cruiser, with limited visibility for the driver. I will hold off buying another Land Rover until an LR5 model that resembles the old body style is introduced.

Like Reply

Recent Comments

Kjhkjlhkjhkljh kljhjkhjklhkjh so what?? .. 7.5 billion is not even in the same hemisphere as the utterly stupid waste of money on semiconductor fabs to the tune of more than 100 billion for FABS that CANNOT COMPETE in a global economy and CANNOT MAKE THE US Independent from China or RUSSIA. we REQUIRE China for cpu grade silicon and RUSSIA/Ukraine for manufacturing NEON gas for cpus and gpus and other silicon based processors for cars, tvs, phones, cable boxes ETC... so even if we spend trillion $ .. we STILL have to ask china permission to buy the cpu grade silicon needed and then buy neon gas to process the wafers.. but we keep tossing intel/Taiwan tens of billions at a time like a bunch of idiots.Google > "mining-and-refining-pure-silicon-and-the-incredible-effort-it-takes-to-get-there" Google > "silicon production by country statista" Google > "low-on-gas-ukraine-invasion-chokes-supply-of-neon-needed-for-chipmaking"
ToolGuy Clearly many of you have not been listening to the podcast.
1995 SC This seems a bit tonedeaf.
1995 SC Well I guess that will be the final nail in the Mini EV's coffin here. It was already not especially competitive, had no range and was way overpriced for what you get, but I like to get stuff like that used and well depreciated on occcasion though I likely would have passed anyway due to the Chinese manufacture.
MKizzy If China-branded vehicles arrive on these shores filling the gaping hole of sizes, body styles, and price points largely abandoned by established automakers, they will immediately find an interested customer base among those low/middle income consumers whose parents were (un)happily puttering around in old Hyundai Excels and Yugo GVs. Personally, I do think BYD or another of their major automakers will eventually circumvent the tariffs by building in Mexico and sending vehicles north.