9:19 am, February 1, 2022
Jaguar Land Rover sank £9m into the red during its third financial quarter last year despite revenue increasing to £4.7bn, latest figures show.
Reporting its financial results for the three months to December 31, 2021, the manufacturer said the semiconductor shortage had hit sales to dealers, which at 69,182 were up by eight per cent on the previous quarter.
However, retail sales were down by 13.6 per cent from the previous quarter to 80,126 – and an even higher plunge of 37.6 per cent on the same period the previous year.
The £9m pre-tax loss compared with a pre-tax profit of £439m over the same period in 2020. Meanwhile, it lost £302m during its second financial quarter last year (July to September 2021).
The losses over the first nine months of JLR’s financial year now stand at £421m.
JLR has also revealed that taxpayers in the UK will be guarantors, via the UK Export Finance arm of the government,for £500m of £625m in loans from 12 banks.
The manufacturer wants to use the money for its transition to zero-emission vehicles.
It plans to make all Jaguar cars zero-emission as of 2025, with five new pure-electric Range Rovers rolling off the production lines within five years.
Its Solihull and Halewood factories turned out 220,000 vehicles last year, whereas five years earlier the annual figure stood at 544,000.
Its UK workforce has decreased by nearly a third from 12,000 to 28,000 since then, following Defender production moving to Slovakia.
Commenting on the latest figures, JLR chief executive Thierry Bolloré said: ‘Whilst semiconductor supplies have continued to constrain sales this quarter, we continue to see very strong demand for our products underlining the desirability of our vehicles.
‘The global order book is at record levels and has grown an incredible 30,000 units for the New Range Rover before deliveries even start this quarter.
‘We continue to execute our Reimagine strategy to realise the full potential of the business and create the next generation of the most desirable luxury vehicles for the most discerning of customers.’
