JLR reports £395m quarter loss with Brexit a factor

Jaguar Land Rover (JLR) has reported a pre-tax loss of £395m for April to the end of June, compared to £264 million loss in the same period a year ago and blamed Brexit contingency plans as a key factor.

It said global vehicle sales dropped 11.6% during the period to 128,615, dragging down revenues for the three months to £5.07bn, a decline of 2.5%.

In a statement the company said: “The results are consistent with the outlook for the quarter and primarily reflect lower revenues resulting from the weaker market conditions.

“Additional plant shutdown time and delays in WLTP certification resulting from Brexit contingency planning also contributed to the lower sales and profits.”

In May the company, which has plants in Coventry, Solihull, Birmingham and Wolverhampton, reported a £3.6bn annual loss as it continued to face slowing sales in China and launched a costly turnaround plan.

However, earlier this month the Government supported JLR with a £500m loan to sell the next generation of electric cars around the world.

This followed the car manufacturer’s plans to build electrified vehicles at its manufacturing plant in Castle Bromwich.

JLR is also hoping to see profits rise with the launch of new Range Rover Evoque, Discovery Sport and Jaguar XE models.