British brand Jaguar Land Rover will report a lower profit in 2015, because of investments and the explosion on Tianjin port.
Major investments and the disastrous explosion on Tianjin port which destroyed company car stocks are the main factors for which Jaguar Land Rover will report a lower pre-tax profit in 2015 than in the previous fiscal year. This news has been uncovered to Reuters by the company’s CEO. The British brand has recently announced a 450-million-pound investment in its engine facility, and also lost up to 5,800 cars in the Tianjin blast in August. On top of these, JLR plans to extend production in Europe and South America, in Slovakia, Austria and Brazil more precisely. The investment in its British engine manufacturing center comes just over a year after another 500-million-pound facility was opened, that will help the brand cope with demand as the production is catching speed.
The Indian parent company of Jaguar Land Rover, Tata Motors, saw a decrease in its sales, due to a slow Chinese market, and announced an unexpected loss in the third quarter, while Jaguar Land Rover by itself took a 92-million-pound blow, a 32 percent plunge in sales in China and had a pre-tax loss of 157 million pounds in the three months to the end of September. JLR’s Chief Executive Ralf Speth told Reuters in an interview that he did not expect his company to match the 2.61-billion-pound pre-tax profit it made in the previous fiscal year. “We will have this year a lower profit number than last year,” he said. “It’s (because of) the investments number and this … very special event in China.” But Speth is optimistic and expects a revival in the Chinese auto market.