Jaguar Land Rover (JLR) has posted a £302 million loss for the period July to September as the company continued to battle the ongoing semiconductor shortage.
JLR sold 92,700 cars in the second financial quarter of 2021, a significant decrease on the 114,000 units shifted during the same period last year.
In total, JLR delivered 64,032 cars to its dealers during the same time – a fall of 12.8 per cent year-on-year – while retail sales for all models were lower year-on-year apart from the new Land Rover Defender. In total, 16,725 examples of the off-roader were sold, an increase of 70.4 per cent year-on-year. The results made it JLR’s best-selling model in the quarter, in fact.
Adrian Mardell, Jaguar Land Rover’s chief financial officer, said: “The global shortage of semiconductors continued to constrain our production, sales and financial performance in the second quarter but we’re encouraged to see the continuing strong demand for our products with order books at new record levels.
“We were pleased the cash outflow on these volumes came in significantly better than expected, reflecting the progress we are making to reduce the break-even point for the business through product mix optimisation and cost controls.”
Jaguar Land Rover ended the quarter with total cash and short-term investments standing at £3.8 billion, while despite the ongoing semiconductor crisis, demand for its products remains strong with global retail orders sitting at ‘record levels’ of more than 125,000 vehicles.
We’re proud to share the New Range Rover with the world. Our vision for modern luxury by design, setting a new benchmark in quality, with a bespoke architecture designed for future electrification. #NewRangeRover pic.twitter.com/ZCPupQoabn
— Jaguar Land Rover (@JLR_News) October 26, 2021
Thierry Bollore, Jaguar Land Rover’s chief executive officer, said: “The global semiconductor shortage remains challenging but I’m pleased to see the actions we have been implementing reduce the impact. With strong customer demand with a record order book we are well placed to return to strong financial performance as semiconductor supply begins to improve.
“At the same time, we continue to execute our Reimagine strategy to realise the full potential of the business and create the next generation of the most desirable luxury vehicles for the most discerning of customers – starting with the stunning new Range Rover.”