Wed, Oct 31, 2018 8:02 PM
The UK’s biggest car manufacturer, Jaguar Land Rover (JLR) has announced a series of cost-cutting initiatives after experiencing challenging market conditions.
JLR recorded a pre-tax loss of £90 million during the third quarter, with the demise of diesel sales and tricky market conditions in one of its biggest export markets, China. Changes to import duty in the Chinese market have had a significant impact on sales and JLR bosses are now investigating ways they can save £2.5 billion over the next 18 months.
Overall JLR saw sales drop 13.2% year-on-year and has now made the areas of profitability and cashflow a key focus under two initiatives ‘Charge’ and ‘Accelerate’.
Jaguar expect to see improvements with the I-PACE introduced to overseas markets such as North America and China, with the E-PACE also debuting to its important Chinese customer-base.
There are no mentions of job-losses currently, though the JLR factories have slowed down production and will close completely for a short period ahead of Brexit.
“In the latest quarterly period, we continued to see more challenging market conditions,” said Ralf Speth, JLR’s Chief Executive. “Our results were undermined by slowing demand in China, along with continued uncertainty in Europe over diesel, Brexit and the WLTP changeover. 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.”