‘Worrying Times’ For Jaguar According To Motoring Analyst

Mon 29th Jul 2019

A leading automotive analyst and former chief engineer of Land Rover has said that Jaguar is experiencing ‘worrying times’ on the back of another set of poor financial results.

Jaguar Land Rover announced that they had made a loss of £395m in the second quarter of 2019, with Brexit uncertainty, a slowing China market and diesel demand dropping all blamed for the company losing more than £4m a day.

The company’s CEO Ralf Speth predicted that JLR would return to profitability by the end of the year and pointed to a record rise in UK sales, while China’s enthusiasm for British made luxury cars is also showing some promise of a return to form.

Now a former Land Rover chief engineer, Dr Charles Tennant has said that JLR faces ‘worrying times’ and that some other luxury car manufacturers may be better prepared for the uncertainty in the turbulent times.
Speaking to Coventry Live, Dr Tennant said: “These are worrying times for JLR as their owner Tata Motors is also struggling with losses in a rapidly slowing Indian car market and a share price that has tanked this year.

“Obviously JLR has suffered more than most with the diesel decline and is working hard on its collaboration with BMW on alternative gasoline engines and electrification plans, but it has other problems.

“The company has a complicated and overlapping vehicle range, which has caused a phenomenon known as sales cannibalisation, where similar vehicles across JLR simply compete for the same customers.

“Also it is hampered by poor quality and reliability as evident by coming last in the recent influential JD Power survey in America, warranty expenses at an all time high of 3.9% of revenue, and brand image damaging product recalls in China.”