Jaguar Land Rover reports £9m loss amid continued semiconductor shortage

British brands hit by global chip supply as hold-ups impact JLR’s financials

Jaguar

Jaguar Land Rover boss Theirry Bollore has said that the ongoing global shortage of semiconductor chips vital in modern cars is continuing to “constrain sales” at JLR, as the brand posted a £9m loss for the final quarter of 2021. 

It contrasts with Q4 2020, when the company announced a pre-tax profit of £439m, but the news also highlights a reduction in losses sustained over a tough year for JLR in which it posted a pre-tax loss of £302m in the second quarter of 2021. 

The company has reported that revenues are up 22 per cent compared with its difficult Q2 last year, at £4.7bn for Q3. Production volumes also increased 41 per cent. However, there remains a shortfall between the brand’s order book of around 155,000 vehicles - boosted by the arrival of the new Range Rover - and what it can actually deliver to customers given the shortage of chips. As a result, retail sales continued to decline, to just over 80,000 vehicles in Q3. 

In January the Society of Motor Manufacturers and Traders reported that UK car production fell last year to hit its lowest level since 1965.

“It was encouraging to see a positive EBIT margin and cashflow, despite chip supply constraining wholesales to 69,000 units in the quarter. It demonstrates the progress we’ve made in reducing the breakeven point,” said JLR’s chief financial officer Adrian Mardell.

CEO Bollore added: “Whilst semiconductor supplies have continued to constrain sales this quarter, we continue to see very strong demand for our products underlining the desirability of our vehicles. The global order book is at record levels and has grown an incredible 30,000 units for the new Range Rover before deliveries even start this quarter.”

Check out the latest Jaguar news and reviews here...

Recommended

New Jaguar XE and XF 300 Sport models introduced
Jaguar XE 300 Sport
Jaguar

New Jaguar XE and XF 300 Sport models introduced

Luxuriously appointed Jaguar XE and XF saloons come with four-cylinder mild-hybrid petrol power
26 Apr 2022
Jaguar launches portable power pack using recycled I-Pace batteries 
Jaguar's gridtogo Battery Energy Storage System
Jaguar

Jaguar launches portable power pack using recycled I-Pace batteries 

JLR has collaborated with Off Grid Energy to produce a portable energy station using decommissioned batteries from its I-Pace electric car
15 Mar 2022
1,006bhp Jaguar Vision Gran Turismo Roadster virtual concept unveiled
2 Jaguar Vision Gran Turismo Roadster virtual concepts on track - Grant Turismo 7 screenshot
Jaguar

1,006bhp Jaguar Vision Gran Turismo Roadster virtual concept unveiled

Celebrating the launch of Gran Turismo 7, the new virtual Jaguar Roadster concept joins the Vision GT Coupe and Vision GT SV
9 Mar 2022
Jaguar C-Type continuation car: 1953 Le Mans winner reborn
Jaguar C-Type continuation
Jaguar

Jaguar C-Type continuation car: 1953 Le Mans winner reborn

JLR Classic Work’s latest Continuation car is a limited-run version of the Le Mans-winning Jaguar C-Type from 1953
17 Feb 2022

Most Popular

15 Tesla Supercharger sites open to non-Tesla vehicles in the UK
Tesla Supercharger
Tesla

15 Tesla Supercharger sites open to non-Tesla vehicles in the UK

Pilot scheme to open up Tesla-only charging network to all electric cars lands at selected UK locations
18 May 2022
Shell and ABB team up to deliver world’s fastest electric car charger
Shell charger
News

Shell and ABB team up to deliver world’s fastest electric car charger

New Shell and ABB-developed Terra 360 EV charger can add 62 miles of range in less than three minutes
16 May 2022
New 2022 BMW 3 Series facelift revealed with updated look inside and out
BMW 3 Series - front
BMW 3 Series

New 2022 BMW 3 Series facelift revealed with updated look inside and out

The BMW 3 Series' mid-life update features a revised design and improved technology, but we’ll have to wait until the next generation for a full EV
18 May 2022