By on November 1, 2018

Jaguar F-Pace 2.0TD - Image: Jaguar

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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23 Comments on “As Sales Slump, Jaguar Land Rover Moves to Plug Leaks...”

  • avatar

    I, for one, need to know Mark Pascarella’s take on this disturbing news.

  • avatar
    Add Lightness

    I do not view excitement with regards to new cars as how well some electronic gizmo assists the driving.
    Perhaps J-LR should look back in time to when an adventure was awaiting the journey.
    Most of their reputation was embellished by misadvenventures which occurred, mostly due to mechanical idiosyncrasies. Now they pander to non-petroheads wanting to be cocooned by luxury and impress their colleagues.
    Would anyone, seriously, take a new LR deep into near impossible terrain with no communication device?

  • avatar

    Maybe we don’t want expensive 5k and 7,5k mile per year leases. A lot of leasing going on right now and your not competitive.

    Products need a boost too. This is coming from someone that buys premium brands and really wants to like a Jag enough to take the plunge

    -Fix the XEs interior
    -Refresh the XF
    -Build a big brother to the F-Pace (maybe rename too)
    -Refresh the F-Pace. Its great but great isn’t doing it

    -Discovery Sport needs a do over… LR3s were nicer on the inside and seemingly larger (we like that over here). Are they still using the Ford 2.0 Ecoboost or are they finally on to the Jag power plant? (Igenum?)
    -Discovery – Lost the look that made it a Discovery/LR4. New look is hideous
    -Evoque – Why would I buy this? I’d just buy a Discovery Sport… Which I wont do.
    – Velar – Nice. I’d lease one. Wait, No I wouldn’t. I’d go with an equally nice competitor same money, more miles per year.
    -RR Sport- The old model stood out. The most recent design just blends in…
    -RR – No opinion. Pockets not deep enough

  • avatar

    From what I can see, the Germans rule the upper class car buyer.

  • avatar

    Jag addressed warranty concerns when they lengthened it but unlike VW who did the same, Jag products are sitting too long without updates.

    The XF’s depreciation is horrendous partly because even when new, it’s interior just didn’t feel that upmarket. I think it’s a cool design, but it’s not modern the way Audi or Merc are even though it hit the market 2 years ago.

    I get they wanted to ditch the past and modernize away from the old XJ era, but the uniqueness of Jag got pitched aside in favor of a less defined brand.

    Callum nailed the design of the F-Type and the SUVs and the XF Sportbrake looks fantastic, but the sedans look kind of dull.

    • 0 avatar
      Add Lightness

      The XF’s depreciation is horrendous because it’s a Jag.
      On the flip side, if you go into it with eyes wide open, they are very cheap used and can be bought for pennies on the dollar after 6 or 8 years.

  • avatar

    JLR have a perfect storm of problems:
    – Brexit is causing uncertainty at home
    – Trumps policies are causing havoc in JLR second biggest market in China
    – Diesel has become unpopular overnight in Europe thanks to VW.
    – the Sedan is on its knees

    So what’s the answer? Hybrid Land Rover’s and Electric Jags for sure. Kill the XE, make even more SUVs, get the Defender out and rethink the Discovery line.

  • avatar

    Oh and tell the U.K. government to sort Brexit or it will close all its U.K. factories within the next 12 months. Watch how fast the UK government panics in that one.

  • avatar

    There are too many car brands. I’m struggling to think of why anyone should buy a brand new Jag over any German/Lexus equivalent, even at a healthy discount. Can you?

    • 0 avatar

      Yes I can, they are just so much nicer. Personal example, 2008 I was looking for a new car. I probably settled on a Imprezza 5 door, but I hesitated. Engine ran rough and I wasn’t all that excited about it. I used some software where you answer a lot of questions and it made recommendations. Two cars showed up on the list Volvo C30 and the Audi A3. The Volvo was nice, but not impressive. The A3 was fantastic. Great interior, performance, practical and expensive. It took a couple of months but I ended up with a low mileage used car and never regretted it. Still today I think it was the best car I ever owned and probably got rid of too soon. Yea a GTI might of been acceptable, but it just didn’t feel the same.

      • 0 avatar

        Nice story, but how does a C30, A3 and GTI relate back to Jaguar?

        People have varying preferences, so I think choice is good but I have to agree with Sporty. The only Jaguar I’d want is the F-Type. But I’d most likely purchase a Boxster/Cayman or Corvette instead.

        Personal proclivities aside, if they truly are so much nicer, then either the buying public doesn’t know, or for whatever reason, doesn’t care.

  • avatar

    Is this a shock? Jaguar hasn’t made money since the 80’s; the only way JLR got by in recent years is A) booming Range Rover sales, and B) use of platforms, powertrains, and technology that was paid for by Ford prior to its sale. Now that Tata is on their own for R&D, they can’t keep up: the “Ingenium” engine line is crap, basically a warmed-over version of the old Ecoboost engines. Add to that mystifying bad product planning at LR (Who signed off on the styling of the new Discovery? Who priced the Discovery Sport? Who let the fashion statement Evoque get so passé?) and you’re left with the Range Rover and Range Rover Sport lines to carry two whole brands. I would say that they could get bought again, but the Americans and Germans have been burned already. Maybe Hyundai will bite, though they seem to be fine trying to make Genesis a “thing” on their own.

  • avatar

    LR vehicles fall firmly into the category of Dooshmobile around here.

  • avatar
    FWD Donuts

    I’ve got a 2004 S-Type R. It’s a cool product. Great power. Comfortable. Distinctive styling — right down to the leaper on the hood. Great freeway cruiser with enough pop to bring a smile on your face when you put your foot in it.

    Since the Tata acquisition, everything unique about the brand has been drummed out of it. The styling has been watered down to just another German or Japanese brand. I want to like their offerings — but can’t. Even the leaper is history. And the Jaguar logotype they introduced a couple of years ago looks like it was lifted from a box of condoms.

    Jaguars used to provide good value for money as well. The STR’s would sticker out at around $66K early on — when its competitors were 20 large higher at least. Not anymore.

    In hindsight, Ford should’ve turfed Lincoln and hung onto JLR for its global luxury brands.

  • avatar

    Jaguar should move fast to all electric, bet the farm on it. Either they will be ahead of the Germans where the market is going or the market stays with internal combustion in which case they are toast (which they will be even if they stay with IC).

  • avatar

    I can’t tell you how many people I know who have bought Range Rovers that won’t every touch the JLR brand again. I’m dumber than my friends… I owned two Range Rovers before deciding that I don’t want to spend my weekends drinking Keureg coffee in the JLR service waiting room anymore.

  • avatar

    I can’t tell you how many people I know who have bought Range Rovers that won’t ever touch the JLR brand again. I’m dumber than my friends… I owned two Range Rovers before deciding that I don’t want to spend my weekends drinking Keureg coffee in the JLR service waiting room anymore.

  • avatar

    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.

  • avatar

    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.

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