Jaguar Land Roverโs recovery from major cyber attack hit by fire at supplier and Middle East disruption
A major fire at a component supplier and disruption connected to the Middle East conflict have led to a sharp drop in sales for Jaguar Land Rover.
The business, which is owned by Indiaโs Tata Motors, said its income was also lowered by the planned wind down of several Jaguar vehicles.
Revenues at the UKโs largest automotive manufacturer fell by 9.6 per cent year-on-year to ยฃ6 billion for the three months ending 30 June, following a 9.2 per cent drop in car sales volumes.
The decline came as vehicle assembly faced severe disruption from various issues, including a supplier factory fire. JLR was forced to temporarily stop making its Range Rover and Range Rover Sport lines at its Solihull facility in March after a fire at a parts maker in Norway.
Overall sales figures were additionally affected by Jaguarโs choice to halt production of numerous petrol and diesel cars, including its F-Pace.
Jaguar is transitioning to focus on electric models as part of a strategy overhaul designed to boost the brandโs fortunes.
PB Balaji, chief executive of JLR, said: โDespite the near-term industry challenges, we continue to see strong demand for our brands and look forward to the launch of four sensational new products in the coming months: Range Rover Electric, Range Rover Sport Electric, Range Rover GT and Jaguar Type 01.
โI would like to thank all our people, suppliers and retail partners for their continued dedication, resilience and support.โ
JLR also reported a pre-tax profit, before exceptional items, of ยฃ109 million for the quarter, compared with a ยฃ351 million profit a year earlier.
Profit margins were also knocked by a one-off provision linked to US fuel economy rules, which partially offset reduced US-UK tariffs.
Last month the car manufacturer revealed plans to cut hundreds of jobs as part of a major transformation plan.
It is understood that fewer than 300 jobs will be affected at the UKโs largest car maker.
The company, which employs about 30,000 people across the UK and roughly 10,000 overseas, did not disclose where jobs will be hit.
JLR makes most of its cars in factories in the UK, including Solihull, West Midlands and Halewood, Merseyside, and Slovakia.
