Jaguar Land Rover reports £451m quarterly loss as it cuts 4,000 jobs
Jaguar Land Rover has reported a £451m quarterly loss for July–September, even as revenues rose to £5.9bn, after booking £530m in costs from cutting 4,000 jobs near the end of that period in tough trading conditions. Britain’s largest automotive employer said it had scraped into profit from operations if restructuring costs were ignored, but was hurt by falling sales in China and the Middle East. It expects the vast majority of the cuts via voluntary redundancies, with 3,000 already confirmed and most of those people leaving at the end of November.
Chief executive PB Balaji said the “onslaught of competition” from Chinese electric carmakers meant the UK and EU should drop plans for new post-Brexit trade barriers. The industry is lobbying both sides to delay “rules of origin” from 1 January that threaten 10% tariffs on UK–EU electric cars using Asian batteries; the EU is also considering “made in Europe” rules that could lock UK-made cars out of subsidies. Balaji argued that they needed time for the electrical ecosystem to evolve.
Tata-owned JLR previously targeted China for growth, then wrote off billions in 2019 as Chinese carmakers created massive overcapacity. After a devastating hack last year, it is targeting US growth and agreeing a deal for Stellantis, owner of Chrysler, to manufacture Land Rovers for the first time. It has begun producing electric Land Rovers with the flagship Range Rover in Solihull in the West Midlands, with electric Range Rover Sport, Defender and Defender Sport to follow. It also makes the luxury electric Jaguar Type 01 and is working on a new Discovery.
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