British brand hit by global chip supply as hold-ups impact JLR’s financials.
Jaguar Land Rover boss Theirry Bollore has said that the ongoing global shortage of semiconductor chips vital in modern cars is continuing to “constrain sales” at JLR, as the brand posted a £9m (AUD$17m) loss for the third quarter of 2021.
It contrasts with Q3 2020, when the company announced a pre-tax profit of £439m (AUD$833m), but the news also highlights a reduction in losses sustained over a tough year for JLR in which it posted a pre-tax loss of £302m (AUD$573m) in the second quarter of 2021.
The company has reported that revenues are up 22 per cent compared with its difficult Q2 last year, at £4.7bn (AUD8.9bn) for Q3. Production volumes also increased 41 per cent. However, there remains a shortfall between the brand’s order book of around 155,000 vehicles – boosted by the arrival of the new Range Rover – and what it can actually deliver to customers given the shortage of chips. As a result, retail sales continued to decline, to just over 80,000 vehicles in Q3.
CEO Bollore added: “Whilst semiconductor supplies have continued to constrain sales this quarter, we continue to see very strong demand for our products underlining the desirability of our vehicles. The global order book is at record levels and has grown an incredible 30,000 units for the new Range Rover before deliveries even start this quarter.”
James Brodie