We were pleased to see sales, profitability and cash flow significantly improve in Fiscal Q2 from the prior quarter. While sales and profitability have not fully recovered to pre-pandemic levels in most markets, it was particularly encouraging to see China sales up year-on-year and global sales of the new Land Rover Defender starting to ramp up. The Charge+ cost and cash efficiency programme also contributed significantly to the better results in the quarter. Charge+ remains on track to deliver £2.5 billion of saving this year and, with continued strong liquidity, Jaguar Land Rover is well-placed to benefit from further market recovery in the second half and beyond. Adrian Mardell Jaguar Land Rover Chief Financial Officer
All of Jaguar Land Rover’s manufacturing facilities have now resumed production, with the plants at Solihull (UK), Halewood (UK), Nitra (Slovakia) and the Engine Manufacturing Centre at Wolverhampton (UK) now increased to two shifts as demand for the company’s vehicles has continued to recover.
A gradual improvement in sales is expected to continue and will be supported by new and refreshed products, including the short wheel-base Land Rover Defender 90, the refreshed Jaguar F-PACE, as well as 2021 model year Range Rover Velar, Jaguar XF and Jaguar XE. Furthermore, Jaguar Land Rover continues to expand its offering of electrification across its model range. Of the 13 nameplates in the company’s product portfolio, seven have now been revealed with plug-in hybrids and nine with mild-hybrids, in addition to the full battery electric Jaguar I-PACE. One more PHEV and two more MHEVs are expected to debut this fiscal year.
Although the outlook remains uncertain as a result of Covid-19 and the ongoing negotiations over future UK / EU trading arrangements, Jaguar Land Rover expects the recovery in sales, revenue, and profitability to continue in the second half of Fiscal 2020/21, supported by Project Charge+. The company also continues to expect positive free cash flow over the second half of the year and remains committed to achieving positive free cash flow in Fiscal 2021/22, to reduce net debt and increase financial resilience.
Thierry Bolloré, who became Jaguar Land Rover Chief Executive Officer on 10 September 2020, concluded:
Although Jaguar Land Rover is not immune to the headwinds impacting the global automotive industry, it has the foundations in place to generate long-term sustainable profitability. I have been encouraged by the strengths of the company – reflected by its brand appeal and the capabilities of its employees – that will enable it to seize new opportunities in a rapidly-changing industry. I am confident these qualities and a strong product strategy with a focus on financial discipline will equip Jaguar Land Rover to address challenges in the period ahead. Thierry Bolloré Jaguar Land Rover Chief Executive Officer