Skip advert
Advertisement

Jaguar Land Rover plans major cost cutting following £90 million loss

Savings of £2.5 billion will be made at Jaguar Land Rover over the next 18 months, but no job losses have been announced

Jaguar I-Pace - front cornering

Jaguar Land Rover, the UK’s largest carmaker, is to make savings of £2.5 billion over the next 18 months following another dip in profits and sales. The company recorded a pre-tax loss of £90 million during the third quarter of 2018. 

During July to September of this year JLR sold 129,887 vehicles worldwide, a decline of 13.2 per cent year-on-year. JLR cited diminishing diesel sales and ‘challenging market conditions in China’ where demand for vehicles has dropped due to changes on import duty.

Advertisement - Article continues below

JLR boss warns no-deal Brexit could cost “tens of thousands” of jobs

Ralf Speth, Jaguar Land Rover CEO, said: “In the latest quarterly period, we continued to see more challenging market conditions. Our results were undermined by slowing demand in China, along with continued uncertainty in Europe over diesel, Brexit and the WLTP changeover.”

While no job loses have been announced business analysts have suggested it will be difficult for the firm to cut £2.5 billion in spending without a reduction in workforce. Of that overall figure around £1 billion will be axed from investment alone.

JLR has named its cash saving programmes ‘Charge’ and ‘Accelerate’. The former focuses on stripping costs and reassessing investment plans, while the latter centres around adjusting long term operating efficiencies. 

The news follows a string of setbacks for JLR who recently axed 1,000 jobs at its Solihull manufacturing facility, while workers at Jaguar’s plant at Castle Bromwich were reduced to a three-day working week because of falling sales.

Click here for the latest spy shots of the new 2020 Land Rover Defender...

Skip advert
Advertisement

Find a car with the experts

Skip advert
Advertisement

Most Popular

Ford Fiesta set to return? Icon could be reborn with a little help from Volkswagen
Ford Fiesta exclusive image

Ford Fiesta set to return? Icon could be reborn with a little help from Volkswagen

The Ford Fiesta could be coming back from the dead, and our exclusive image previews how it might look
News
2 May 2025
New Kia PV5 Passenger MPV undercuts the VW ID.Buzz by a huge £25k
Kia PV5 Passenger - show front

New Kia PV5 Passenger MPV undercuts the VW ID.Buzz by a huge £25k

New entry into the electric people carrier market undercuts the VW ID. Buzz by a significant margin
News
29 Apr 2025
New 2025 Kia PV5 van starts from a tempting £22,645
Kia PV5 Cargo on display at Commercial Vehicle Show - front 3/4

New 2025 Kia PV5 van starts from a tempting £22,645

All-new entry into the van market promises competitive pricing and comes with a range of up to 247 miles
News
30 Apr 2025