play_arrow

keyboard_arrow_right

skip_previous play_arrow skip_next
00:00 00:00
chevron_left
volume_up
chevron_left
  • cover play_arrow

    Rother Radio (128k) Love Local, Love Music!

  • cover play_arrow

    Rother Radio (64K) Love Local, Love Music!

  • cover play_arrow

    Hit Music Radio (128K) More Music Variety!

  • cover play_arrow

    Hit Music Radio (64K) The Best Variety of Hits!

Business News

Jaguar Land Rover swings to £302m loss as it counts cost of global chip shortages

today01/11/2021

Background
share close

Jaguar Land Rover, Britain’s biggest car maker, has swung to a quarterly loss of £302m after counting the cost of the global shortage of semiconductor chips.

JLR said the shortages had held back sales volumes – which fell by nearly half in the UK compared with the same period a year ago – in the three months to the end of September.

The second quarter loss compares with a profit of £65m for the same quarter in 2020.

Please use Chrome browser for a more accessible video player

Chip shortage impact to be felt throughout 2022, SMMT warns

But JLR, owned by India’s Tata Motors, said demand remained strong with global orders for vehicles from retail customers standing at a record 125,000.

It said the chip shortage “remains dynamic and difficult to forecast” but that it expects to see a “gradual recovery” starting in the second half of the financial year.

Meanwhile the company – which has provided a fleet of electrified vehicles for world leaders and delegates to the COP 26 summit in Glasgow – said the share of such vehicles it sold, including hybrids, rose to 66% in the latest quarter.

JLR had previously predicted a tough period as a result of the chip shortages.

More from Business

However, in its latest results statement, it said it had burnt through less cash than expected as it focused on higher margin products and kept a lid on costs.

The company saw the volume of wholesales to dealerships fall by 12.8% year-on-year to 64,032 while direct retail sales dropped by 18.4% to 92,710.

Please use Chrome browser for a more accessible video player

Ford boss: Chip shortage a ‘huge issue’

Overall revenues of £3.87bn were down by 11%.

The biggest hit to retail sales came in the UK, where JLR shifted 48% fewer units than in the same period last year, while North America saw a decline of 16%.

JLR said retail sales of all models were lower year-on-year except for the new Land Rover Defender, which sold 16,725 vehicles, up 70%.

Chief executive Thierry Bollore said: “The global semi-conductor 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.”

The global chip shortage has affected, to varying degrees, carmakers and other manufacturers across the world from Tesla and Apple to Toyota and Sony.

Industry figures from last week showed the number of cars built in the UK fell to their lowest September level since 1982 amid the shortage.

 Sky News

© Sky News 2021

Written by: Rother Radio News


Previous post

Entertainment News

The Wombles collaborate with Sir Paul McCartney for Meat Free Monday campaign

Following world domination with the most successful music act of all time, Sir Paul McCartney went on to collaborate with everyone from Stevie Wonder to Rihanna throughout his career.Now, he is joining forces with perhaps a more unusual act - The Wombles. The project aims to encourage people to eat less meat for the sake of the planet, as part of the #OneStepGreener campaign for the COP26 climate summit. We […]

today01/11/2021