Jaguar Land Rover Posts Mega $4.4 Billion Loss In Final Quarter Of 2018

Jaguar Land Rover has posted a pre-tax loss of 3.4 billion pounds ($4.4 billion in current exchange rates) in the final quarter of 2018.

The massive loss comes after the British automaker’s decision to write down £3.1 billion ($4 billion) in the value of its plants and cars. Not accounting for this one-time adjustment, JLR still lost £273 million ($354 million) during 2018’s Q4.

The automaker sold 144,602 models between October and December, down from the 154,447 it sold during the same period in 2017, a reduction of 6.4 percent. Net revenue was decreased by 1 percent, from £6.3 billion to £6.2 billion ($8 billion). This is the third consecutive quarterly loss for the two British automakers.

“This is a difficult time for the industry, but we remain focused on ensuring sustainable and profitable growth, and making targeted investments, that will secure our business in the future,” said Dr. Ralf Speth, Jaguar Land Rover’s CEO.

Sales in China were down by a huge 47 percent, which offset the positive results in North America and Europe. Out of JLR’s 13 models across its two brands, only four saw their sales grow: the electric I-Pace and the E-Pace, which are both made in Austria by Magna Steyer,- and the Range Rover and Range Rover Sport.

Jaguar Land Rover has already announced that it will axe around 4,500 jobs as part of a cost-cutting strategy, but they remain committed to their electrification plans, which include the opening of a new battery assembly factory in the UK and another one in Slovakia.

more photos...
  • TRB0T0Y

    So they overvalued their cars and plants by $4 BILLION?! Did Bernie Madoff get work release to do their books?!
    The $4.4 Billion loss doesn’t sound so bad considering 4 of it is a financial adjustment.

    • alexxx

      Click bait

    • It’s most likely related to an accounting rule on the valuation of Goodwill. What it means is that JLR’s name
      and assets are [email protected], and thus has to be reduced in value on their books.

    • Ken Lyns

      No. Go back further. Think Enron 🙂

  • Jason Panamera

    Just wait for JLR being sold for Chinese. Seems like Tata have no good ideas for improving JLR.

    • designer_dick

      You mean apart from the £2bn annual profits they were making before China’s new car market went into decline and Europe turned against diesel overnight? No, no ideas at all… https://uploads.disquscdn.com/images/1479d83248e3ab1ff01897502ef1b91433cbf4076945f334a7c9ffcf2781a150.gif

      • Karl

        Fan boy alert here folks!

        • designer_dick

          Stating a fact doesn’t make me a fanboy. JLR has made £12.5bn in pre-tax profits since 2011. Tata isn’t about to abandon them over two bad quarters and an investment writedown. https://uploads.disquscdn.com/images/0c96d227a436a2893c756da55b28b5f47d9bc31b6a17c5a1d3768d7703e8b0d1.gif

          • Jason Panamera

            And JLR tripled it’s sales since Tata has taken over it. In China they had time when they were making huge profits per car. Everything cool but… they overslept Jaguar jump into SUVs and proper investments in China, where they only wanted to count profit per car what is short-sighted. Few years ago I’ve read nice analysis about JLR and now I am not even surprised what happens. You say ,,China’s new car market went into decline” but look at other premium brands there, they didn’t suffer at all. And JLR isn’t the only brand who’s diesel sales are big part of whole sales numbers but again, look at Volvo, Benz, BMW ( not Audi becasue of almost whole lineup change) they have like JLR petrol engines and aren’t at the position as JLR is.

          • Karl

            Ok Mr. Major stock holder!

  • No surprise. Those things are overpriced reliability nightmares.

    • designer_dick

      You’ll probably be surprised to hear that Jaguar’s sales in the US increased 26.7%, and Land Rover’s by 23.2% in 2018. Jaguar also increased by 22.9% in the EU, while Land Rover declined by 11.6%, probably due to the market’s almost overnight shift against diesel. The only market where they’re really in trouble is China, which is being affected by factors beyond their control.

  • TheBelltower

    So they really “just” lost $354M, while the rest was a write-down. Still, not great but not nearly as massive as one might think. And it should put them in a better position for future earnings.

    • designer_dick

      They lost £273m primarily thanks to a massive sales downturn in China, and a shift away from diesel in Europe which they were relatively unprepared for. Writing down the value of their assets in one fell swoop might look like a huge financial calamity for the company, but in reality, it stops them recording a paper loss in excess of £300m on those assets every year for the next decade, so it’s worth taking the hit to make their balance sheet healthier in the long term.

      • TheBelltower

        Exactly. Seeing a number with a “B” after it is much worse-sounding than a loss with an “M” after it. Still not a good story. But not a devastating one either.

  • Bob White

    BMW couldn’t fix JLR and lost Billions, same goes for Ford and now Tata is repeating the same process despite sinking billions in the company. Maybe it’s time to pack it in. After all this, it’s still at the bottom of the barrel in reliability in every survey. The Chinese would just drive it further into the ground.

  • Merc1

    Now you know why the 2-door Range Rover was cancelled.

    M

  • designer_dick

    The point that EVERYONE seems to be missing is that the £3.1bn write down is a paper transaction that has no effect on the company’s day-to-day financial position. Everyone’s rushing to pronounce Jaguar Land Rover’s death, completely disregarding the £12.5bn in pre-tax profits the company has made since 2011.

  • Mr. EP9

    Well, I guess that explains why the Range Rover SV Coupe was killed before it went into production.

  • Marwan Abdul Hak

    Not so bad given the past successes they had in recent years. I would recommend bringing faster the defender, make Special high luxury products that differentiate them: XK or XJ coupe, evoque coupe like the very first concept, and why the E Pace weighs the same like F pace! This is rediculous !!

  • EyalN

    That wasn’t very smart to make electric car

    • S3XY

      That is the only smart thing they can do. They will fail if they don’t transition. If that’s you in your avatar then this discussion can not be continued based on your helmet Q.

    • carsmofo

      That’s a terrible thing to say in 2019. If anything they should be making more and affordable electric cars.

  • TRB0T0Y

    There will always been an England, and there will always be a Range Rover. Yinz guyz know they make SUVs, right?
    All kidding aside, those puppies will always print money and are absolutely top notch as far as the actual buyers are concerned.
    They appear well poised for the times too- one end you got the 500hp V8 bruisers, then the I-Pace ‘lectric platform. XJ will be whirring aht soon too. Perhaps they can do the classic GM move, sell the new XJ alongside V8 ‘CLASSIC ‘ ones.

  • Maykel

    Say goodbye to sedans.

  • Alduin

    Why is JLR using Ford engines and possibly their transmissions? No wonder they’re not selling because they’re unreliable.

    • HaltestelleLuitpolthafen

      Those would be the most reliable parts of the vehicle, no idea what you’re talking about.

      The JLR electronics and suspensions are what make them unreliable.

  • SteersUright

    Who didn’t see this coming?
    They simply aren’t up to par.

Toyota Corolla Hatch Gets New Gear Down Under, Starts At AUD $23,335

Equipped with new safety and convenience features, the updated Corolla will arrive at Aussie dealers on November 1.

2020 BMW 2-Series Gran Coupe Teased Ahead Of Tomorrow’s Debut

BMW is finally ready to fully embrace front-wheel drive sedans.

Hyundai And Kia Settle Class Action Lawsuits Over 2.0- And 2.4-Liter GDI Engines

The settlement covers approximately 4.1 million vehicles in the United States.

Audi Grounds Their Flying Car Project

The company has suspended work on the project and is reviewing their partnership with Airbus.

Pimp Your 2020 Chrysler Pacifica With Official Red S Edition Package For $3,995

The Red S Edition package is available for 2020 Chrysler Pacifica Limited gas and hybrid models and focuses mostly on the interior.

Morris Commercial Teases Their Carbon Fiber-Bodied Electric Delivery Van

The upcoming model draws inspiration from the 1950’s Morris J-type van.

Buick Puts Bigger Battery Into China’s Velite 6 EV, Extends Range To 255 Miles

The new version of Buick’s EV gains an 148 HP electric motor and a 52.5 kWh battery pack, which extends its range by 68 miles.

Jeep Gladiator XMT Unveiled As A Light Tactical Military Truck

The Gladiator XMT could go into production during the second half of next year.

Hyundai Nexo And Tucson FCVs Have Racked Up Over 8.4 Million Miles In The U.S.

Despite not selling in high numbers, mainly due to the limited refueling infrastructure, the two models have covered a distance equal to 17 round-trip journeys to the surface of the Moon.

2020 Acura ILX Hits Showrooms, Retains Last Year’s $25,900 Starting Price

The 2020 ILX features available Apple CarPlay and Android Auto integration, plus the AcuraWatch safety suite as standard.