Skip advert
Advertisement

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. 

Advertisement - Article continues below

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...

Skip advert
Advertisement
Skip advert
Advertisement

Recommended

Best new cars coming in 2024
Best new cars coming in 2024 - header image
Best cars & vans

Best new cars coming in 2024

There are some big new models from the likes of BMW, Citroen, Dacia, Ford, MINI, Skoda and more on the way in 2024
12 Mar 2024
Jaguar Land Rover pays for more police at UK ports to curb exports of stolen cars
Ships at port
News

Jaguar Land Rover pays for more police at UK ports to curb exports of stolen cars

The Range Rover maker spends ‘several hundred thousand pounds’ in effort to thwart stolen car exports from the UK
7 Feb 2024
Exclusive: Jaguar Land Rover boss sets the record straight on thefts, insurance, parts supply, electrification and more
JLR interview
News

Exclusive: Jaguar Land Rover boss sets the record straight on thefts, insurance, parts supply, electrification and more

JLR’s UK managing director, Patrick McGillycuddy, talks to us about the issues facing the business and its big future plans…
3 Feb 2024
Jaguar Land Rover CEO hits back over Range Rover theft issues
Range Rover action
News

Jaguar Land Rover CEO hits back over Range Rover theft issues

Insurance companies are “not using the data” according to CEO Adrian Mardell
2 Feb 2024

Most Popular

Road tax set to rise in April: here’s how much more you’ll pay
Road tax documentation
News

Road tax set to rise in April: here’s how much more you’ll pay

Drivers with newer cars will now pay £10 more per year, although the biggest gas guzzlers fare even worse
28 Mar 2024
Posh new trim level for Dacia Sandero while the Sandero Stepway gets more power
Dacia Sandero - front
News

Posh new trim level for Dacia Sandero while the Sandero Stepway gets more power

Both the Sandero and Sandero Stepway ranges have been tweaked, gaining more safety features to meet the latest regulations
26 Mar 2024
Car Deal of the Day: updated Skoda Enyaq at 0% APR and a free home wallbox charger thrown in
Skoda Enyaq iV - front cornering
News

Car Deal of the Day: updated Skoda Enyaq at 0% APR and a free home wallbox charger thrown in

Skoda’s family-friendly EV with 348-mile range is our Car Deal of the Day for 26 March
26 Mar 2024