Sales collapse at JLR as it furloughs 20,000 staff
Car sales at Jaguar Land Rover (JLR) dropped by 12% as the coronavirus pandemic hit the car maker hard in its fourth quarter.
The firm sold 508,659 vehicles over the year. Its fourth quarter sales were down almost 31% at just 109,869.
Meanwhile, the manufacturing giant revealed it had furloughed 20,000 staff – half its UK workforce.
Sales have been impacted across all regions with lower sales in North America (7.5% down on record prior year), China (8.9%), UK (9.6%), Europe (16.1%) and overseas (20.3%). China had generated double digit growth in Q2 and Q3 and, with lockdown measures easing, nearly all of the company’s retailers in the region have now reopened and sales are recovering.
JLR has temporarily suspended production at its facilities outside China.
Felix Brautigam, JLR chief commercial officer, said: “2019/20 has been a year of unprecedented disruption for the automotive sector. Despite the impact of regulatory change, shifting consumer tastes, Brexit and ongoing trade tensions, sales for Jaguar and Land Rover were showing improvement until the coronavirus pandemic hit in the fourth quarter.
“Through the year, our diverse portfolio of Jaguar sports cars, SUVs, sedans and crossover vehicles continued to excite customers across the globe. Most recently, we launched our new, more assertive, Jaguar F-TYPE to very positive customer and media response. With the increasing demand for alternative powertrains, we were pleased to see sustained growth in sales of the multiple award-winning Jaguar I-PACE, the world’s first all-electric performance SUV from an established brand.
“We were also encouraged by the ongoing strength of our existing vehicles and the positive reception for our latest models. Range Rover and Range Rover Sport, for example, retain their appeal thanks to regular updates such as plug-in hybrid technology. Demand has been particularly strong for the new Range Rover Evoque with sales up nearly 25% year-on-year. And we will soon offer highly competitive plug-in hybrid versions of both the Evoque and the Land Rover Discovery Sport. 2019 saw us unveil the all-new Land Rover Defender, the world’s most iconic 4×4, reimagined for the 21st century. There has been unprecedented interest in our most capable Land Rover ever.”
Meanwhile, JLR has furloughed up to 20,000 staff – half its entire UK workforce.
The company said it has “furloughed all roles that are not critical during this temporary period of disruption” caused by the outbreak of COVID-19.
The manufacturer also said that its leadership team and board would be deferring salary payments for three months, starting in May.
JLR ceased production at its three manufacturing sites in Halewood and the West Midlands last month, and said the shutdown will continue “for a few more week”.
A company statement said: “At Jaguar Land Rover, the health of our employees is our primary concern. We continue to monitor the COVID-19 situation and follow the guidance of all relevant authorities.
“Our manufacturing sites are on a controlled stop and continue to adhere to government advice.
“Against the backdrop of rapidly changing circumstances, we have decided to extend the controlled stop at our plants for a few more weeks.
“We are working towards an orderly return to production as soon as conditions permit.
“We are operating in line with advice from the NHS and Public Health England to minimise the spread of the coronavirus while implementing plans to safeguard our business continuity.”
