5:14 pm, July 25, 2019
JAGUAR Land Rover plunged into the red during the fiscal first quarter despite record sales in the UK, it revealed today.
The company made a loss before tax of £395 million in the three months to June 30, which it said was consistent with expectations.
It was wider than the £264 million loss reported this time last year, and was down from a £120 million profit between January and March.
Global retail sales declined by 11.6 per cent to 128,615 vehicles, as industry volumes dropped in most regions.
The company was one of many car makers that moved forward its annual factory shutdown to April in anticipation of the original Brexit deadline. These contingency plans also contributed to the lower sales and profits in the period.
Nevertheless, UK sales were up 2.6 per cent on the year to 27,100, outperforming a wider industry which declined by 4.6 per cent.
But it was the only region to show growth, with even the biggest market in the US declining 0.6 per cent.
Sales in China were down 29.2 per cent, but the company said it had seen an improvement in June.
Ralf Speth, chief executive, said: ‘Jaguar Land Rover is in a period of major transformation. We are simplifying our business, delivering on our product strategy and adapting to the tough market environment.
‘We will build on our strong foundations and increased operating efficiency to return to profit this fiscal year. In this period, we expect to see the impact of growing demand for new models such as the Range Rover Evoque, Discovery Sport and Jaguar XE, whilst implementing our “Charge” transformation programme.’
In January, the company announced it would cut 4,500 jobs globally, including some employees in the UK. But in July, Jaguar said it would build a range of electric cars in the UK at the Castle Bromwich plant near Birmingham.
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