Jaguar F-Pace Forum banner

41 - 57 of 57 Posts

·
Registered
Joined
·
42 Posts
With that said, if it were to go up for sale, I feel the U.K. would step in and buy the company.

DP
I was gonna write that in my earlier post. If worst comes to worst, there's no way that they will let Jaguar go down and vanish as a car company. Somebody will step in to save it.
 

·
Registered
Joined
·
2,119 Posts
All this chatter, made me go back out last night on the internet and look at the Alpha, Maserati, BMW and even a GLC AMG Merc, and I'm just not as happy with any of them.

From my perspective, I have 4 dealerships within 30 minutes of my house, so if things get bad I'm assuming we'd still have coverage somewhere. We'll have to see. Hopefully, the first SVR SUV won't be the last one for Jaguar!
 

·
Registered
Joined
·
592 Posts

·
Registered
Joined
·
337 Posts
https://europe.autonews.com/automakers/jaguar-land-rover-posts-first-profit-four-quarters-amid-china-woes?utm_source=breaking-news&utm_medium=email&utm_campaign=20190520&utm_content=hero-readmore

Jaguar Land Rover posts first profit in four quarters amid China woes

MUMBAI -- Jaguar Land Rover reported its first profit in four quarters to raise optimism that the struggling UK automaker is on the mend.

Net income was 119 million pounds ($151.6 million) in the three months ended March, Jaguar Land Rover said in a statement on Monday, while profit before tax, excluding exceptional items, was 269 million pounds.

JLR made a loss of 3.6 billion loss for the full year to March after a large writedown in the third quarter.

While the latest results are encouraging for JLR, its struggles in China persist as sales tumbled 46 percent in April, raising questions as to how long the Indian parent will hang on to what was once its crown jewel.

Reports have said that JLR owner Tata Group is exploring strategic options for the luxury brand, including a potential sale to PSA Group.

China should return to growth "a quarter from now," Tata Motors' Chief Financial Officer P.B. Balaji told reporters in Mumbai, reiterating the Indian company was not looking to sell its luxury cars unit. Jaguar Land Rover has "managed to stabilize" in China after removing surplus inventory, he said.

Jaguar Land Rover is not the only automaker suffering in China where the market is going through its longest slump in a generation but the company faces other challenges. JLR is particularly vulnerable to the shift away from combustion and diesel engines, and its strong historic links to the UK have fueled concern over what a disruptive Brexit could bring.

JLR has also been struggling with quality problems.

A J.D. Power U.S. survey of 31 brands in June 2018 put them in the bottom two slots. Jaguar had 148 problems per 100 vehicles and Land Rover racked up a dizzying 160. Top-ranked Genesis, the luxury brand of Hyundai, had 68.

Land Rover still ranks as the most valuable of the major brands owned by Tata Group, which also controls Tetley tea and New York’s luxury Pierre hotel. The automotive marque was worth an estimated $6.2 billion last year, according to Interbrand.
 

·
Registered
Joined
·
337 Posts
Jaguar Land Rover bond risk sees record fall as China sales revive
MUMBAI -- Sentiment toward Jaguar Land Rover is improving at an unprecedented pace, after stabilization in its China business helped the premium UK automaker's parent Tata Motors report a narrower loss than expected.
So say the debt markets, where credit-default swaps insuring against default at the company dropped a record 268 basis points in October to 538. The cost to buy protection against JLR bond non-payment had been as high as 943 basis points in February.
JLR's retail sales in China grew at double digits for the three months through September as new product launches boosted sales. The number had plunged by double digits for 12 months in a row before the revival.
The automaker's turnaround could be sustained as China sales continue to rise, and as the company tightens its belt further, according to a note from Nomura Holdings.
After solid second-quarter results, JLR may consider an unsecured issue to refinance a bond maturing this month, Joel Levington, director for credit research at Bloomberg Intelligence, wrote in a note.
Moody's Investors Service, S&P Global Ratings and Fitch Ratings all still have a negative credit outlook for JLR due to risks including uncertainty around Brexit and the U.S. threat of tariffs on car imports from Europe.
With the bulk of its manufacturing in the UK, JLR is the most exposed among automakers to a disorderly Brexit, according to Fitch.
Meanwhile, Tata Motors reported a narrower-than-expected loss helped by the stabilizing sales in China. The company lost 2.2 billion rupees ($31 million) in the three months ended September against a loss of 16.4 billion rupees projected by analysts on average.
 

·
F Pace Expert
Joined
·
2,630 Posts
From an abysmal base; China market looks to be stabilizing, India still in a near depression in cars/trucks
 

·
F Pace Expert
Joined
·
2,630 Posts

·
F Pace Expert
Joined
·
2,630 Posts
ran across this regarding warranty costs in TTM earnings call, thought it would be of interest;


Adrian Mardell -- Chief Financial Officer-Jaguar Land Rover
I think I mentioned that you may have followed up with Balaji, but I think I mentioned that pretty much in the first call I did in July, 4% to 6% was mentioned at that point in time because the first quarter was at the 6% level. And I think I attempted to say there's a band here. Underlying performance, my expectation will be closer to 4%. However, we've also signaled, we will do the right thing. And therefore, if we come along, we'll call as soon we need to. And if there's opportunity to do customer care campaigns as we did in quarter one, which we feel ultimately will be a payback for the organization. We will take those as well. Over the course of the last six months, neither of those two items have actually happened. Underlying over that period has been at the 4% level. We obviously are working tremendously hard in several areas, including to improve the efficiency and the capability in the engineering factory. We track all the early data to see that. There are very small signs of improvement, but it's far too early for us to show them in the financial results.
We have a rules of the road for warranty, which was set eight years ago, will continue because it enables individual vehicles to make sure before we actually show the individual performance. You know we come off the back of disappointing launches on '18 and '19 model years. And we are determined to make sure we get Defender right which is why we're continuing to work on that product. We're continuing to hold it and give a release date for the spring because we want to make sure it's released to the marketplace when it's ready. So everything we're doing is attempting to improve the immediate quality performance and accelerate it there to improve it with a new vehicle quality. So I will continue to say 4% to 6%, only because it gives us the capability to do the right thing at the right time. But over the last two to three quarters, underlying has been close to 4%.
 

·
Registered
Joined
·
337 Posts
Jaguar Land Rover's UK output at risk from coronavirus-hit supplies
COVENTRY, England -- Jaguar Land Rover has flown Chinese parts in suitcases to Britain to maintain production and could run out after two weeks as the impact of the coronavirus outbreak hits firms across countries and industries.
Britain's biggest carmaker operates three car factories in its home market that build nearly 400,000 vehicles a year.
"We are safe for this week and we are safe for next week. In the third week we have parts missing," CEO Ralf Speth told reporters on Tuesday at the official opening of the National Automotive Innovation Centre in Coventry, central England.
"We have flown parts in suitcases from China to the U.K.," he said.
Production at JLR's Chinese factory would recommence on Feb. 24 and was "safe for the first week," Speth said.
The new coronavirus has killed some 1,900 people in China and infected around 72,000, confining millions to their homes, disrupting businesses and delaying reopening of factories after the extended Lunar New Year holiday break.
Speth said sales in China, the world's biggest auto market, had been hit. That comes after JLR had seen a recovery in sales there, helping it to return to profitability in recent quarters.
"That's completely stopped. It's zero," he said. "You don't know whether the economy will catch up or whether this kind of loss is just a loss."
The boss of Tata Motors, JLR's parent company, Guenter Butschek, speaking at the same event, said the company does not have sufficient visibility regarding parts suppliers from China.
"We are safe for the month of February and for a good part of March," Butschek said. "Are we fully covered at this point of time for the full month of March? Unfortunately...not."
JLR joins major global companies in warning of the impact of the coronavirus in China on supply chains.
Fiat Chrysler Automobiles has suspended production of the Fiat 500L at its Serbian plant due to disruptions in the supply of audio system parts.
 

·
Registered
Joined
·
337 Posts

Jaguar Land Rover, Bentley to suspend UK production
Jaguar Land Rover and Bentley will temporarily suspend production at their UK manufacturing facilities to curb the coronavirus' spread.

Jaguar Land Rover said it will halt output next week and it intends to resume production at the facilities in the week of April 20. The company has thee car plants and an engine plant in England.

The automaker's manufacturing plants in Brazil and India are continuing their operations, the company said in an emailed statement.

The Tata Motors-owned automaker said on Wednesday it would suspend production at its plant in Nitra, Slovakia, from Friday due to the pandemic.

Bentley said it will stop production at its factory in Crewe, England, from the end of Friday for four weeks.

The Volkswagen Group ultraluxury brand builds about 11,000 vehicles a year. It said the move was to protect the health of its workforce and due to accelerating constraints on activity and declining demand in some markets.

The Crewe factory should reopen on April 20, CEO Adrian Hallmark told Reuters, just as the automaker had returned to profitability last year after a difficult 2018.

"We were all set up for a gangbusters 2020, the first two months of the year have been very strong ... and then the coronavirus hits us," he said.

"Any ideas of glory and big profits that we had have been tempered significantly but having said that, we really don't know how it's going to play out."

Bentley swung to a 65 million euros operating profit last year from a 288 million loss the year before, VW Group said in a statement on March 17. Its sales revenue was 2.1 billion euros and the brand achieved a 3.1 percent operating return on sales.

Automotive News Europe contributed to this report
 
41 - 57 of 57 Posts
Top