Jaguar Land Rover in £22 million profit boost

Nov 30 2009 by Jon Griffin, Birmingham Mail

JAGUAR Land Rover has bounced back in style from the worst recession to hit the automotive sector for decades to unveil profits of £22 million for the third quarter of 2009.

The upturn in JLR’s fortunes for the three months to September compared with losses of £49 million in the previous quarter to the end of June.

In the summer Tata revealed pre-tax losses for Jaguar and Land Rover of nearly £350 million in 2008 compared with a pre-tax profit for the two marques of £660.5 million in 2007.

Tata Motors said the improvement was helped by investment gains and higher sales volumes as the net loss for the JLR owner narrowed to £60 million from £240 million a year ago.

September quarter sales volumes at JLR rose 23 per cent to 44,300 vehicles from 35,900 in the preceding quarter, and Tata Motors said there were signs of improved demand for other key units following the global slump in the auto sector.

New JLR products such as the upgraded Range Rover, Range Rover Sports and Discovery 4 were getting a good reception while aggressive cost cuts were also paying off, Tata Motors said. Meanwhile, car industry analyst KK Mittal said: “There is a recovery happening in Europe, one of JLR’s key markets.

“They also have a better product mix now with the new launches.”

JLR announced in September that it will eventually shut either its Jaguar plant at Castle Bromwich or the Land Rover factory at Lode Lane by the middle of the next decade as part of its new Business Plan.

The group has claimed that will be coupled with further investment in the company and a net increase in production and jobs.