The Jaguar Land Rover has recorded an annual loss of £3.6 billion, but Managing Director Ralf Speth says a continuing cost-saving programme will make it a better fit for the future.
The pre-tax loss for the year ending March reflected a decline in business value of £3.1 billion in the last quarter of last year, but also showed the continued impact of falling sales in China and continued uncertainty about Brexit. The companys annual revenues of £24.2 billion declined £1.2 billion year on year.
While Jaguar Land Rovers annual sales increased 8.4% in the UK and 8.1% in North America, the sharp decline in China meant that its total sales of 578,915 vehicles fell 5.8% year-on-year.
Jaguar Land Rover recorded a pre-tax profit of £269 million in the last quarter of the fiscal year covering the period January-March 2019, although this was reduced to £120 million once redundancy costs, which are part of its ongoing transformation programme, were taken into account. The firm said it retained £3.8 billion in cash.
Speth said the restructuring programme has already resulted in an efficiency gain of £1.25 billion, making the company “one of the first companies in its sector to cope with multiple headwinds simultaneously sweeping the car industry.
He added: “We are taking concerted action to reduce complexity and transform our business through cost and cash flow improvements.
“The Jaguar Land Rover focuses on the future as we overcome the structural and cyclical problems that affected our results last year. We will continue to move forward as a transformed, leaner and more suitable company, based on the sustained investment of recent years in new products and the autonomous, connected, electric and shared technologies that will drive future demand.