According to reports, Jaguar Land Rover has experienced a $413 million loss at the end of the third quarter due to scarcity in chip supply. The said shortage has prevented the automaker from fulfilling the orders from the customers. However, in some quarter-end last year, the Jaguar Land Rover has reported a substantial 65 million pounds of profit or about $90 million.
The Chief Financial Officer of Jaguar Land Rover, Adrian Mardell, told the investors last November 1, 2021, that the company has a considerable number of unfulfilled demand that is about 160,000 vehicles which is definitely the highest number in their company history. Jaguar Land Rover has about 128,000 cars on their order books; during this time, the inventories on the dealer are down to 20,000, and those currently at the company are at 27,000. Mardell added that it is the lowest level of inventories on the dealer, and their history has quite a long time of records.
RELATED: A Golden Garage: 8 Golden Cars In The Ultra Expensive Collection Of The Saudi Prince
The loss of Jaguar Land Rover is the opposite of what the other premium brands have experienced. Brands like Audi and Mercedes-Benz have profited from the supply constraints because they raised the prices and reduced their marketing costs. The two brands just focused on their higher-margin models. Mardell said that the profit of Jaguar Land Rover in the same quarter last year was just an outlier because of China's return to normality right after the pandemic.
Mardell adds that the revenue of Jaguar Land Rover per vehicle was about 61,000 pounds for the quarter, which is approximately $83,000. This figure is lower than the same period of last year. However, Jaguar Land Rover also reported 110 million pounds in March and June quarter, about $15 million. Mardell said that they had targeted the higher-margin vehicles like the Range Rover and Range Rover Sport, and they prioritized the two in terms of production; however, the chip is still not enough to build the number of orders for the said vehicles.
The supply issues greatly impacted their higher-margin cars the most. The lack of chips has also forced the company to just pool with the brand Tesla so that they will be able to avoid emission fines both in the UK and European Union. The collection for the calendar of the year 2021 will cost Jaguar Land Rover about 37 million pounds or about $50 million.
Sources: Automotive News Europe, Buzz News Post, Financial Times
ncG1vNJzZmivp6x7tbTEq6CcoJWowW%2BvzqZmq6GTnXqxu9aeqZ%2BtnGS3orPUmqlmpJGjsW6%2Bzq%2Bcq2Wimr2wvtOsZJplZGaAbrnIpaOip55iubC%2F0maYrWWknbJusc2dZKieXam1qr7DZqiumaKpsrN7