TATA MOTORS

Jaguar Land Rover bitter big losses

Records of profits are good, but no one wants to talk about losses. Unfortunately for Jaguar Land Rover, there is no chance not to speak of such a negative result that led the two British brands to announce that after a bad year, the last quarter proved to be catastrophic, with losses (before taxes) to to £ 3.4 billion, some EUR 3.9 billion.
Most dramatically, this bad result comes after the group announced a cut of 5,000 jobs to 2019 as a way to reduce fixed costs, which is part of a € 2.79 billion savings plan. And in spite of all this, this bad fourth quarter was the third consecutive for the English group.
There is apparently nothing wrong with the vehicles produced, both by Jaguar and Land Rover, the problem is that they are making vehicles that the public is not very inclined to buy. The huge reliance on diesel engines has hurt both brands, especially in the UK and China, where this type of motorization began to fall into disuse, which is evidenced by the 47% drop in sales, only in the Chinese market.
As if the bad news was not enough, in the financial chapter there is also the question of demand, because of the 13 models of the two ranges, the only ones that grow are the I-Pace tram and Jaguar's small SUV E-Pace. It turns out that both are made at Magna, a small independent Austrian manufacturer, which manufactures for half the world - in addition to Jaguar, produces the new BMW Z4 and Toyota Supra -, which does not make life easier for British factories. Autonews