As Sales Slump, Jaguar Land Rover Moves to Plug Leaks

Steph Willems
by Steph Willems

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]

Steph Willems
Steph Willems

More by Steph Willems

Join the conversation
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.

  • VoGhost Key phrase: "The EV market has grown." Yup, EV sales are up yet again, contrary to what nearly every article on the topic has been claiming. It's almost as if the press gets 30% of ad revenues from oil companies and legacy ICE OEMs.
  • Leonard Ostrander Daniel J, you are making the assertion. It's up to you to produce the evidence.
  • VoGhost I remember all those years when the brilliant TTAC commenters told me over and over how easy it was for legacy automakers to switch to making EVs, and that Tesla was due to be crushed by them in just a few months.
  • D "smaller vehicles" - sorry, that's way too much common sense! Americans won't go along because clever marketing convinced us our egos need big@ss trucks, which give auto manufacturers the profit margin they want, and everybody feels vulnerable now unless they too have a huge vehicle. Lower speed limits could help, but no politician wants to push that losing policy. We'll just go on building more lanes and driving faster and faster behind our vehicle's tinted privacy glass. Visions of Slim Pickens riding a big black jacked up truck out of a B-52.
  • NotMyCircusNotMyMonkeys dudes off the rails on drugs and full of hate and retribution. so is musky.