Īdrian Mardell, Jaguar Land Rover’s Chief Financial Officer, said: Jaguar Land Rover ended the quarter with total cash and short-term investments of £3.8 billion, after the issuance of €500 million 7-year and $500 million 8-year bonds, resulting in total liquidity of £5.9 billion (including a £2.0 billion undrawn revolving credit facility).ĭespite the impact of the semiconductor shortage on production and sales, the Company continues to see strong demand for its products with global retail orders at record levels of more than 125,000 vehicles. This was significantly better than prior guidance for a £1 billion free cash outflow, reflecting prioritised production of higher margin products and cost controls to reduce the cash break-even point for the Company. The free cash outflow was £664 million, after £484 million of investment spending and £501 million volume-related working capital outflow. The mix of electrified vehicles (BEV, PHEV and MHEV) reached 66%.įor the Quarter, revenue was £3.9 billion with a pre-tax loss of £302 million (EBIT margin -4.7%). Retail sales of all models were lower year-on-year except for the new Land Rover Defender, which retailed 16,725 vehicles, up 70.4% year-on-year, making it our bestselling model in the quarter. Retails were lower year-on year in most regions, including North America (-15.6%), China (-6.3%), Europe (-17.0%), and in the UK (-47.6%), but were up in our Overseas region (+10.0%). Wholesales to dealers in the Quarter were 64,032 vehicles, down 12.8% year-on-year, and r etail sales (including the China Joint Venture) were 92,710 vehicles, down 18.4%, reflecting the semiconductor shortage and lower retailer inventories. The global semiconductor supply shortages continued to constrain sales volumes and revenue in line with expectations and resulted in a loss, however, the cash outflow was significantly better than anticipated. Mini, owned by Germany’s BMW, had to adjust output schedules earlier this year, although its problems have eased in recent months.Whitley, UK, 1 November 2021: Jaguar Land Rover Automotive plc today reported its financial results for the three months to 30 September 2021. The semiconductor shortage has hit every large user of chips, but the car industry has been particularly badly affected because companies cut back production at the start of the pandemic. Metalwork for Range Rover models has also continued at Halewood. JLR, which is owned by India’s Tata, is focusing on producing its most profitable Range Rover and Range Rover Sport models, both of which are built at Solihull in the West Midlands, according to three sources.īritain’s largest automotive employer is thought to have cut back production at Halewood and Castle Bromwich, also in the West Midlands, at several points through the last year, although production at the latter factory is also expected to wind down gradually in the coming years as the carmaker consolidates other operations at the site. Ola Källenius, the chief executive of Mercedes-Benz owner Daimler, last month said semiconductor shortages could last throughout next year and into 2023. Volkswagen’s top US executive said last week that the shortage will run at least into the second half of next year. The Renault chief financial officer, Clotlide Delbos, warned that the chip supply would remain constrained throughout much of 2022, Reuters reported. The French carmaker Renault on Friday said it would cut its output by 500,000 cars this year, double its previous forecasts.
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