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.