Jaguar Land Rover skids to £395m loss in first quarter
Jaguar Land Rover (JLR) skidded to a £395m pre tax loss for the first quarter of its new financial year after sales fell nearly 12 per cent.
In the three months to 30 June, JLR sold 128,600 cars, down from 145,500 cars in the same period last year.
Revenue slid to £5.07bn for the quarter, a fall of 2.8 per cent on the previous year.
Read more: Jaguar Land Rover moves production of historic Defender model to Slovakia
The quarterly loss comes after the Tata-owned carmaker posted pre-tax profit of £120m in the previous quarter following nine months of losses.
JLR’s full-year loss was a massive £3.6bn which included a £3.1bn write down in the third quarter to cover falling demand for newer models, as well as for diesel-powered cars.
The company has announced 4,800 job cuts this year as it struggles with falling demand from China and the shift away from diesel.
JLR had previously announced a £2.5bn turnaround plan which aims to return the company to profit this year.
Read more: Jaguar Land Rover makes £1bn pledge to Britain’s car industry
Chief executive Ralf Speth 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 April JLR said it would build its new generation Land Rover Defender at its plant in Slovakia. The previous model was manufactured for 67 years in the firm’s factory in Solihull, with production ceasing in 2016.
Earlier this month JLR said it would invest almost £1bn in building electric cars in the UK as it seeks to offer electric options for all its new models by 2020.
It will start with an electric version of its luxury XJ saloon, building the car at its Castle Bromwich plant, which it will convert into an electric vehicle factory.