The multi-billion British company registered a loss of €4.1 billion loss in this financial year. This annual loss is estimated was due to a slump in the Chinese car market.
Earlier this year the luxury car company had announced 4,500 jobs cut from its manufacturing unit. This was estimated to be dragged down of €3.8 billion in the third quarter. Last year’s profit of €456 million was mainly hit by the economic slowdown in China.
The Chinese car market showed a drop in its graph. This was said to be the reason behind the loss of jobs. The resultant was a decline of 5.8% in sale to 578,915 vehicles in that region.
The company is optimistic about its recent sales, delivering pre-tax £137 million profit in the fourth quarter. That is to March 31 following nine months of loss.
The firm is also hopeful about its unit sales in North America and the United Kingdom. The sales have seen a rise of about 8.1% and 8.4% respectively during this financial year.
The full-year revenue has seen a downward trend of 5.6% to £8.1 billion. This in spite of the growth in the US and UK was trembled by the weak Chinese market.
Earlier this year, Jaguar Land Rover has launched £2.8 billion turns around the program. It has already spent around £170 million on the redundant cost to date. This turnaround program has delivered £1.4 billion in efficiencies and saving cost, as confirmed by the company.
Dr Ralf Speth, the Chief executive of Jaguar Land Rover is of the view that as Jaguar is the leading company in this sector, addressing multiple headwinds with the sweeping automotive industry is a mammoth task.
He is focused on the future as the company will overcome the trivial structural and cynical issues. This had an impact on the past year.
He looks forward to viewing the company as better equipped and capable, build on sustain investment of recent year in new products and autonomously connected – electric and share technology driving the future demand.
He even shared the company’s difficulty in managing the change to electric vehicles. This is where it lacked behind in the competition. The embarrassment it faced against a shift in diesel was misfortunate. It is to be seen that if they can survive the change to battery electric is a gripping issue. As the Chinese will be seriously involved in moving to electric cars and Germans will not be easy to vacate their position held by them for the last 30 years.
In addition to this the impending Brexit issue. Though the company has not shown any signs or warnings to it. This despite the rumors that the company might reduce the presence in the UK. But it has detail plans of continuing its investment in various British sites.
There has been no reference by the car making company about a possible takeover by PSA, a French company owning Vauxhall, Peugeot and Citroen.
