The papers report that it is not great news for JLR at the moment! The company is facing tough challenges in these uncertain times, not helped by dare I say the word ‘Brexit’ issues, the fall in demand of diesel cars, and the transition from diesel to electric cars.
This downturn all started back at the beginning of last year: Tax changes on diesel cars and Brexit takes it toll
Are there be turbulent times ahead for Land Rover?
JLR booked a £3.1bn reduction in the value of its plants and other investments leading to a £3.4bn quarterly loss, its biggest to date! This figure was not helped by the slowing in demand in the Chinese market.
It’s not only JLR
All carmakers are feeling the pinch of economic pressure as China, the world’s second-largest economy growth has fallen for the first time in almost 3 decades during 2018.
JLR’s retail sales in China, which account for about one in every seven of its cars sold worldwide, fell by 40% year on year during the quarter, overshadowing growth in the US and British markets. Sales rose by a fifth year on year in the quarter in the US and by 18% in the UK.
Jaguar chief executive Ralf Speth said:
“Jaguar Land Rover reported strong third-quarter sales in the UK and North America, but our overall performance continued to be impacted by challenging market conditions in China.”
Having recently announced a cut in 4,500 jobs in their Midlands and Merseyside plants. Thankfully at this stage JLR has said there will be no more job losses beyond these.
Let’s hope this is a short-term dip
JLR has a programme in place to accelerate the business by focusing on the longer-term investment, with the transition from fossil fuel-powered vehicles to battery technology.
“This is a difficult time for the industry but we remain focused on ensuring sustainable and profitable growth and making targeted investments that will secure our business in the future.”
With the launch of their new versions of the Range Rover Evoque and Land Rover Defender models later this year, let’s hope they stay on the front foot with their product portfolio.