JLR profits hailed as major boost to automotive sector
THE announcement of massive profits by Jaguar Land Rover has been hailed as a major boost for the West Midlands’ automotive sector.
Parent company Tata Motors revealed yesterday that JLR had secured post-tax profits of £1.043bn on revenues of £9.9bn, the record results were boosted by strong sales in international markets such as China.
Rachel Eade, auto project manager for Manufacturing Advisory Service – West Midlands, said the results reinforced what many in the industry had been expecting.
“They mark a tremendous year of international growth for a brand that is still very firmly associated with the West Midlands and the UK,” she said.
“Additionally, this success is cascading its way down the supply chain and resulting in increased volumes for local parts manufacturers and additional work for consultancies and engineers involved in design and prototyping.
“We have worked with a number of firms recently who are growing on the back of JLR – many are even re-hiring staff or taking new ones on as a result of its desire for expansion.”
Denys Shortt, chairman of the Coventry and Warwickshire Local Enterprise Partnership, said: “This is great news for Jaguar Land Rover and therefore for Coventry and Warwickshire.
“The company is a truly global brand built on the back of extremely good products, which are very well marketed. It has exciting plans, including developing its Research and Development in this area, which will massively benefit the economy and be a boost to supply chain. I hope it continues to flourish.”
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, echoed this, saying: “This is fantastic news – not just for Jaguar Land Rover but for the region and the whole automotive sector.
“It remains a company of key strategic importance to Coventry, Warwickshire and the wider West Midlands – as well as the UK – and its success is to be celebrated
“The brand is known the world over and is making huge headway in the world’s major emerging markets as well as in more traditional markets. That’s great for UK plc and long may it continue.”
Rising demand in markets such as China and India will dictate the future strategy of the firm.
It is already well advanced with plans to assemble Freelanders in India, while a joint venture agreement could see it begin production in China.
There is also speculation the company may plough some of the profits into developing a new engine plant, with the i54 site outside Wolverhampton as one of the leading contenders for the factory.
The company is also set to reveal a raft of new models, beginning with the Range Rover Evoque, which goes on public display in Birmingham for the first time today.
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