Revenue and sales at luxury car maker Jaguar Land Rover have taken another major hit as the global computer chip shortage continues.
For the three months to September 30, Coventry-headquartered JLR – which has major factories in the West Midlands and Merseyside – recorded revenue of £3.9 billion with a pre-tax loss of £302 million, while retail sales dropped by 18.4 per cent to 92,710 vehicles.
JLR bosses say the ongoing global shortage of semi-conductors had a significant impact on production and sales, but added that the company continues to see “strong demand” for its products with global retail orders at record levels of more than 125,000 vehicles.
Adrian Mardell, Jaguar Land Rover’s chief financial officer, said: “The global shortage of semi-conductors 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.”
The company added that while the semi-conductor shortage remains “dynamic and difficult to forecast”, it expects to see a gradual recovery starting in the second half of the 2022 financial year.
JLR also remains committed to its Reimagine strategy to achieve net zero emissions by 2039.
Thierry Bollore, Jaguar Land Rover’s chief executive officer, 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 and a record order book we are well placed to return to strong financial performance as semi-conductor 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.”