Are the automaker's financial woes finally over?
It's no secret that Jaguar Land Rover has been facing a financial crisis. Between April and June this year, the company posted a huge loss of £395 million (around $506 million) due to falling sales and plant closures amid the uncertainty of Brexit. It's a bleak situation, but Jaguar's recovery strategy is finally starting to pay off.
According to the company's financial results, Jaguar Land Rover generated pre-tax profits of £156 million (around $200 million) in Q3 2019, a substantial £246 million (around $315 million) improvement over the same period last year. Revenue also increased eight percent year-on-year to £6.1 billion (around $7.8 billion).
While total retail sales were down by 0.7 percent, sales performance in China increased to 24.3 percent. The launch of the new Range Rover Evoque also helped Jaguar Land Rover turn a profit in the third quarter, with global sales up by a whopping 54.6 percent. Range Rover Sport sales also increased by 17.5 percent, while Jaguar I-Pace retails were up by 2,593 units. No doubt the upcoming launch of the new Land Rover Defender next spring will help boost the automaker's profits, too.
As part of its 'Project Charge' cost-cutting and restructuring program, Jaguar Land Rover has already achieved £2.2 billion in efficiencies savings. As a result, the company is on track to achieve the full targeted £2.5 billion by 31 March 2020 and further improvements beyond then. Jaguar Land Rover says it expects to achieve further year-on-year improvement for the financial year ending March 31 2020.
"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," said Jaguar Land Rover boss Ralf Speth. "We were one of the first companies in our sector to address the challenges facing our industry. As such, it is encouraging to see the impact of our Project Charge transformation program and our improvement initiatives in the China market start to come through in our results."