Jaguar Land Rover reveals £2.5bn turnaround plan following sinking sales figures
PUBLISHED: 09:06 01 November 2018 | UPDATED: 09:06 01 November 2018
Jaguar Land Rover has unveiled a £2.5bn turnaround plan that includes cost cutting following hefty losses in the second quarter.
Britain’s biggest carmaker, owned by Indian conglomerate Tata, booked a £90m pre-tax loss in the three months to September 30, which compares to a £385m profit in the same period last year.
Revenues were also down 10.9% year-on-year at £5.6bn as retail sales declined 13.2% to 129,887 vehicles.
In China, demand was adversely impacted by consumer uncertainty following import duty changes and escalating trade tensions with the US.
While in the UK, “continuing uncertainty related to Brexit” persisted.
Boss Ralf Speth said: “In the latest quarterly period, we continued to see more challenging market conditions. Given these challenges, Jaguar Land Rover has launched far-reaching programmes to deliver cost and cashflow improvements.
“Together with our ongoing product offensive and calibrated investment plans, these efforts will lay the foundations for long-term sustainable, profitable growth.”
In September Jaguar Land Rover announced a cut in production at Solihull due to “continuing headwinds” affecting the car industry.
The firm said it was making “temporary adjustments”, with staff placed on a three-day week until Christmas.
JLR also announced it will cease production at the plant for two weeks after demand for its vehicles slumped.
It comes off the back of plans to shift all production of its Discovery model to Slovakia from the West Midlands site.