Jaguar Land Rover posted £ 455 million in losses due to chip deficit bites

In the year that all its rivals set records, Jaguar Land Rover lost £ 455 million due to a semiconductor shortage.

The Ukraine crisis also includes £ 43 million in damages for its shutdown operations in Russia due to sanctions.

A year ago, the Coventry-based business, owned by Tata Motors in India, reported a profit of £ 662 million and a profit of £ 3 billion in five years because it made Jaguar the only electric-brand.

In today’s full-year results for 12 months from the end of March, there was no new news on how that journey was going. Asked for an update on the plug-in Jaguar’s provision, Tata Motors chief financial officer PB Balaji said: “We are working to make it available.”

In its full fiscal year, total sales fell 14 percent to 376,000. Sales of Range Rover and Land Rover fell 12 percent to 299,000. Jaguar delivery fell 20 percent to 6,000.

Five years ago the company was reporting total sales of 621,000. Range Rover / Land Rover delivery stood at 442,000 and Jaguar’s volume was 178,000.

Last year’s revenue was 7 percent lower at £ 18.3 billion, down 7 percent from the previous year It is about 25 per cent less than its style when it makes more than 24 billion pounds.

Last year, ব্যবসা 1.16 billion in cash left the business. Its latest quarterly sales show that January to March 2021 was lower than in the last three months, with annual sales falling 36 percent.

On top of the 412 million loss from normal operations, the company booked a £ 43 million charge to “break” sales to Russia and Ukraine, which historically accounted for 2.5 percent of annual sales.

Last year’s big German rivals blew the door. BMW has made the most profit in its history, 12.5 billion. Mercedes-Benz made € 12 billion in the last quarter of last year, a total of € 23 billion for the year alone. Volkswagen has earned 20 billion euros.

VW’s British subsidiary Bentley, located in Cruy, geographically between Jaguar Land Rover’s Solihull and Hollywood’s two main plants, recently reported a profit of 170 million euros in the first quarter of 2022, a record 38 million after sales of 14,6000 cars for 2021. 30 percent more than before.

Semiconductor supply crisis in the issue, hundreds of microchips are used in modern cars.

The big manufacturers are having trouble getting supplies but they have shifted the received consignments to their most expensive and most profitable lines, including electric cars. As with many small operations, the lack of semiconductors has adversely affected Jaguar Land Rover.

The team was excited. As it said before the exceptional items, it did better than the break in the first three months of the year and the cashflow was positive.

It said demand for its newly updated original Range Rover product was as strong as the order for the Land Rover Defender, which is now built into Slovakia’s low-cost economy.

Operated by a wealthy parent company, it has £ 4.4 billion in cash and a £ 2 billion underdraft bank overdraft.

However, it warns that the immediate outlook was not good. “Inflation represents a rising headwind for the business,” the company said in its earnings statement.

It added: “We expect the global semiconductor deficit to continue to improve in the coming fiscal year, with gradual improvement. Cavid lockdowns in China are expected to limit volume growth.” [the April-June] Probably a result of negative earnings and negative cash flows in the quarter. “

Thierry Bollore, a French automotive veteran who became chief executive of Jaguar Land Rover 20 months ago, failed to give a scheduled media briefing but said in a statement: “The environment is still tough.”

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