£524m loss for Jaguar Land Rover in first quarter
Luxury car maker Jaguar Land Rover has reported a pre-tax loss of £524 million for the first three months of its financial year.
In the quarter to the end of June, revenue was down 7.6 per cent to £4.4 billion on the three months to the end of March.
The financial performance was hit by semiconductor shortages and other constraints.
JLR, which has its engine manufacturing centre at the i54 to the north of Wolverhampton, expects significant improvement in the full year to March 31, 2023.
The computer chip-related production constraints were compounded by slower than expected production ramp up of the New Range Rover and Range Rover Sport. Covid-19 lockdowns in China also impacted production and sales.
JLR said that demand remains strong with a record 200,000 orders for its cars, with Range Rover, Range Rover Sport and Defender accounting for more than 60 per cent of those.
Computer chip supply is expected to gradually improve.
Thierry Bollore, JLR’s chief executive, said: “Our strategy to deliver the future of modern luxury to our clients continues at speed, as we accelerate our plans for an electric-first, brand-led business.
“Although headwinds from the global semiconductor supply and Covid lockdowns in China have impacted our business performance this quarter, I am pleased to confirm that we have a completely reinforced organisation set up to respond to the semiconductor crisis. This is now starting to recover production growth to achieve greater volumes and will allow us to take advantage of our record order book in the second quarter.”
Retail sales in the quarter were 78,825 vehicles, broadly flat (183 cars lower) compared with the last quarter and down 37 per cent (46,000) from the same quarter a year ago.
