JLR Report Huge Loss

Tue 2nd Aug 2022

Jaguar Land Rover reported a £524 million loss in the first quarter—up from a £512 million loss in the same period last year—but said it expects to increase production.

According to chief executive Thierry Bollore, the sale of just 78,825 cars in the first three months should be easily eclipsed in Q2, and a dent made in the order book in the process.

Jaguar Land Rover says it will boost production in the second quarter, despite reporting losses of £524 million for the first quarter to the end of June.

Long waiting lists for a new Land Rover have been reported on numerous occasions, and the record order book Land Rover is sitting on is mainly composed of the new Range Rover, new Range Rover Sport, and Land Rover Defender.

The long waiting time and the big order book is because of supply-chain issues, particularly 'Chips,' Covid hangovers, and China lockdowns, all of which result in a £524 million loss for Jaguar Land Rover's first quarter financial year ending June 30, 2022.

The new Range Rover and Range Rover Sport models took longer than expected to go into production, resulting in Covid and supply-chain issues, according to the company. A substantial number of customers were waiting for a new Land Rover, Range Rover, and Jaguar car.

“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,” Bollore said. “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.”