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Jaguar Land Rover suffers £302M loss over semiconductor shortage

Jaguar Land Rover suffers £302M loss over semiconductor shortage
Jaguar Land Rover suffers £302M loss over semiconductor shortage

Jaguar Land Rover (JLR), the British luxury and sports automotive company, has reportedly posted a loss of £302 million between July to September as the firm battles the ongoing global semiconductor shortage.

In the second quarter of 2021, JLR sold 92,700 automobiles, a considerable decline from the 114,000 total sales in the same period the previous year.

JLR supplied 64,032 automobiles to its dealers in total over the same period, a drop of 12.8% year on year, and retail sales for all models were down year on year, except for the new Land Rover Defender. Altogether, 16,725 off-roaders were sold, representing a 70.4% rise year over year. In fact, it was JLR's best-selling vehicle model in the quarter.

Adrian Mardell, CFO of Jaguar Land Rover, stated that in the second quarter, the global semiconductor scarcity hampered company productivity, sales, and financial condition, but JRL is hopeful as it sees sustained demand for its vehicles with its order books at new highs.

The revenue expenditure on these levels was substantially better than projected, indicating that the company is getting better at lowering the business’s break-even point through product mix optimization and cost management.

Despite the continuing semiconductor crisis, Jaguar Land Rover concluded the quarter with £3.8 billion in cash and short-term investments, while demand for its products stays strong, with global retail bookings of more than 125,000 automobiles; at record levels.

Thierry Bollore, JLR’s CEO, stated that while the global semiconductor scarcity remains a challenge, the actions the company has been implementing have reduced the overall impact.

Bollore added that thanks to the robust consumer demands and record order book, JRL is well-positioned to return to good financial performance as the semiconductor supply crisis begins to improve.

Meanwhile, JLR also continues to implement its Reimagine strategy to maximize the potential of the company to develop the next generation of the most desirable luxury vehicles for the most selective of consumers, beginning with the new Range Rover.

Source credit: https://uk.news.yahoo.com/jaguar-land-rover-posts-302-143703591.html?guccounter=1

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