Jaguar Land Rover returns to profit this quarter - 2020 Jaguar C-Pace Forum
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post #1 of 3 (permalink) Old 10-27-2019, 11:54 AM Thread Starter
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Jaguar Land Rover returns to profit this quarter

This is some promising news, Jaguar Land Rover made a profit this past quarter as a result of cost-cutting and strong sales in China. Hopefully this isn't just an outlier and the sales allow them to get more creative with their vehicles.

Jaguar Land Rover returned to profit last quarter following a sales bounce in China and cost cutting across the business, providing a rare bright spot in an industry beset by falling sales and rising costs.

Pre-tax profit for the three months to September was £156m, compared with a loss of £395m the previous quarter, and a £90m loss in the same period a year earlier.

Sales in China, a market that was once its growth engine but where JLR has struggled in recent quarters, climbed by 24 per cent, driven by new products such as the entry-level Range Rover Evoque.

JLR’s revenues rose 8 per cent to £6.1bn, driven by customers buying more expensive models.

However, besides the new Evoque, sales of its cars fell across the line-up, with retail sales down 0.7 per cent. Only five of its 13 models saw increased demand, while only one Jaguar model, the electric I-Pace, saw sales rise.

The group is in the middle of a £2.5bn turnround plan to cut costs and refocus the business, following deep losses in China and the decline in demand for diesel cars that account for the vast majority of its UK and European businesses.

“Our people have responded very positively to the challenging circumstances over the past year,” said Ralf Speth, chief executive. “Jaguar Land Rover has returned to profitability and revenue growth. This is testament to the fundamental strength of our business, our award-winning products, new technologies and operating efficiencies.”

The previous quarter, where it booked a £395m loss, was affected by the closure of several sites during April in preparation for Brexit. The group is planning to shut sites during November, under plans drawn up under the expectation that the UK would leave the EU on October 31.

The company’s profits cap a difficult week for carmakers’ earnings, with companies from Ford to Daimler stung by China’s volatility and trade war.

On Friday Renault, which issued a profit warning last week, said revenues in the third quarter had come in at €11.3bn, a fall of 1.6 per cent over the same period last year. In Europe, Renault saw sales fall 3.4 per cent in a market that grew 2.4 per cent, while in the rest of the world the French carmaker’s sales fell 5.4 per cent in a market that fell 6.2 per cent.

Renault’s profit warning came just a week into the tenure of Clotilde Delbos, the carmaker’s finance chief who was named as interim chief executive last week following the ousting of Thierry Bolloré by the board.

Although Renault has not spelt out exactly why Mr Bolloré was fired, he was widely viewed to have had a difficult relationship with the carmaker’s alliance partner Nissan; both companies have struggled since the arrest of former alliance boss Carlos Ghosn a year ago.

Earlier this week, Jean-Dominique Senard, Renault’s chairman, vowed to get the alliance with Japan’s Nissan back on track. “My obsession is for the alliance to take off in 2020,” Mr Senard told France Inter radio on Tuesday, adding that if “by 2020” the alliance was not living up to its potential “I’ll consider it to be a failure, on a personal level and by our teams”.
Ronsy87 is offline  
post #2 of 3 (permalink) Old 11-03-2019, 10:39 PM
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I think JLR will only see a major and meaningful shift once they release more EV's. The I-Pace was great but they need more.
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post #3 of 3 (permalink) Old 11-10-2019, 10:38 AM Thread Starter
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Originally Posted by crosscoupe View Post
I think JLR will only see a major and meaningful shift once they release more EV's. The I-Pace was great but they need more.
I agree, everyone else is ramping up EV production and development (especially VW). JLR has to get on board or they're going to get left behind.
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