JAGUAR Land Rover has today reported massive losses for the three-month period ending June 30.
The car manufacturer posted a pre-tax loss of £395million, dwarfing the £264million at the same stage last year.
It also recorded a year-on-year decline of nearly 12 per cent in global retail sales.
The disappointing results were offset by record sales in the UK, up by 2.6 per cent year-on-year.
Sales in China also rose in June despite on-going challenges.
Sales of the all-electric Jaguar I-PACE and the new Range Rover Evoque were up year-on-year, which partially offset the impact of weaker market conditions on other models.
Chief executive Professor Doctor Ralf Speth said: “Jaguar Land Rover is in a period of major transformation.
“We are simplifying our business, delivering on our product strategy and adapting to the tough market environment.
“We will build on our strong foundations and increased operating efficiency to return to profit this fiscal year.
“In this period, we expect to see the impact of growing demand for new models such as the Range Rover Evoque, Discovery Sport and Jaguar XE, whilst implementing our ‘Charge’ transformation programme.”
The company says the savings programme provided £100million of cost savings and £300million reduction to previously planned investment in the quarter.
It added it is on track to achieve £2.5billion of cash and profit improvements with a total of £1.7billion now achieved to date.
In July, the company announced its ambitious electrification strategy, with plans to build three new electrified models at Castle Bromwich.
The first of these will be the next generation all-electric Jaguar XJ, the revolutionary successor to the flagship Jaguar saloon.
The UK government has also announced that UK Export Finance (UKEF) will provide a £500million guarantee for a planned £625million loan facility from commercial banks.
The loan facility is expected to be completed in the coming months and will progressively written off over five years, the company says.
It insists that its financial results will improve over the balance of the year.
