As Sales Slump, Jaguar Land Rover Moves to Plug Leaks

Steph Willems
by Steph Willems
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]

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2 of 23 comments
  • Redapple 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.

  • BuckarooBanzai 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.

  • ToolGuy Good for them.(And their customers. $2500 first-year subscription on top of the system cost? That ain't me)
  • ToolGuy T E L L U R I D E is not on this list(I can keep my poster on the wall)
  • ToolGuy My impression is that Honda has been coasting on its reputation for awhile now.(To Honda's credit, they aren't standing on the Self Destruct button like Toyota seems to be)
  • Fred I owned a 2001 MR2 for 15 years nothing ever went wrong with the vehicle. It was always exciting to drive most people thought it was a boxster. The only negative was storage and legroom considering I'm a little over 6:4 the only reason it was sold was as a second car and a grandchild on the way we needed something more practical.
  • V16 I'm sure most people could find 155,365 reasons to choose another luxury brand SUV and pocket the difference.