Jaguar Land Rover warns of profit squeeze amid Chinese competition

Summarised from 2 outlets · Updated 13 Nov, 22:08 · Archive

Jaguar Land Rover has warned of tighter profit margins as it battles competition from Chinese rivals and geopolitical challenges.

Jaguar Land Rover reported a £451m quarterly loss between July and September, with revenues rising to £5.9bn but £530m in costs from job cuts announced near the end of that period. Excluding restructuring charges, JLR reported a £6m pre-tax profit from operations. The company expects profit margins to be between 2 and 3 per cent in the current financial year, down from an earlier forecast of around 4 per cent.

JLR attributed the squeeze to several factors: falling sales in China and the Middle East, an adverse market mix that shifted sales towards lower-margin markets such as the UK, and US tariffs introduced by President Donald Trump. The company has largely recovered from a cyber attack last year that halted production for a month. JLR is also attempting to reposition its Jaguar brand as an ultra-luxury electric carmaker, having unveiled the Type 01 last month.

The job cuts are proceeding ahead of schedule, with about 3,000 of the 4,000 planned redundancies confirmed through voluntary arrangements. Most of those employees are expected to leave by the end of November. Chief executive PB Balaji said job cuts were an 'important part of the plan' for the brand's recovery. He also called for the UK and EU to work together against 'the onslaught of competition' from Chinese electric carmakers, particularly concerning proposed new trade barriers between Britain and Europe.

How it is being reported

• Jaguar Land Rover reports £451m quarterly loss as it cuts 4,000 jobsJLR chief executive calls for EU and Britain to join forces amid competition from rival Chinese electric carmakers Jaguar Land Rover has reported a £451m quarterly loss as it counts the cost of cutting 4,000 jobs, while its chief executive has called for the EU and Britain to work together in the face of competition from China. Britain’s largest automotive employer reported revenues rising to £5.9bn between July and September, but it recorded £530m in costs from the job cuts announced near the end of that period amid tough trading conditions. Continue reading...The Guardian · 13 Nov, 16:22
• JLR profits under pressure as it battles Chinese rivals and geopolitical 'challenges'Jaguar Land Rover has warned of a squeeze on profits as it battles ongoing geopolitical challenges and heightened competition from Chinese rivals.This is Money · 13 Nov, 14:18

In this story: Jaguar Land Rover · Tata Motors · PB Balaji · China · United States · European Union · United Kingdom

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