6 godzin temu
Luxury carmaker Jaguar Land Rover (JLR) has seen profits nearly halve after a slump in sales and a hit from US trade tariffs.
The Tata-owned group reported a 49.4% plunge in underlying pre-tax profits to £351 million in its first quarter to the end of June.
It follows a 9.2% drop in revenues to £6.6 billion, after a temporary pause in exports to the US and the planned wind-down of older Jaguar models ahead of the launch of new electric ranges in 2026.
JLR said US tariffs had a "direct and material impact on profitability and cash flow in the period".
However, the company added that the "US-UK trade deal will significantly reduce the financial impact of US tariffs going forward".
It comes after the group announced plans to axe up to 500 management jobs in the UK last month.
The cuts will impact 1.5% of its UK workforce of more than 33,000, with the jobs going as part of a voluntary redundancy programme for managers.
CEO cites challenging global conditions
JLR chief executive Adrian Mardell said the results come amid "challenging global economic conditions".
He added: "We are grateful to the UK and US governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on July 27."
It has been a challenging time for the group, with its recent rebranding and advertising strategy attracting controversy.
Mardell also announced plans to retire in November after three years at the helm and 35 years with the company.
He will be replaced by PB Balaji, group financial officer of Tata Motors.
JLR halted new shipments to the US in April but restarted exports in early May amid hopes that a trade deal for the sector would be struck.
The car firm saw wholesale sales in North America drop by 12.2% year-on-year in the quarter after the pause.
The group has since welcomed trade deals with the US, which reduced tariffs on UK-made vehicles exported to America from 27.5% to 10% from June 30.
An EU-US trade deal was also announced on July 27, which will reduce the tariffs on JLR’s vehicles made in the EU and exported to the US from 27.5% to 15%.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
