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JLR post record results for the year

Liverpool-based car manufacturer Jaguar Land Rover has posted record results for the full year, with sales, revenues and profits all on the rise.

Retail sales rose by 22% to 374,636, revenues increased by 17% to £15.8bn and profit before tax rose by 11% to £1,675m.

The company said it successfully launched new models during the year which supported improvements in retail sales.

Globally, the manufacturer also fared well, with sales up 48% in China, 27% in Asia Pacific, 18% in Europe 9% in North America and 19% in other overseas markets.

JLR chief executive, Dr Ralf Speth, commented: “The positive result for the financial year demonstrates that we have strong demand for our great, solid product portfolio all around the world.

“Jaguar Land Rover invested significantly in the product creation process, in our advanced manufacturing sites and created more than 3,000 jobs.

“This commitment is set to continue with a sustained programme of investment which will see us spend in the region of £2.75bn on new product, people and infrastructure in the year to March 2014.”

Car industry analysts said UK results outweighed a fall in profits for JLR’s parent group Tata Motors, who saw a 36% profit drop.

Dr Christian Stadler, associate professor of strategy at Warwick Business School, said the firm is targeting the right customers- rich people in growing BRIC markets- using two-wheel-drive versions of its 4x4 models to appeal to consumers who want a certain image of car, but don’t necessarily need the functionality.

He added that JLR’s financial statement indicates a bright future for the UK car industry, despite “the country’s economic woe.”

Dr Stadler said: “In mature industries like the car industry, positioning is particularly important and JLR’s customers are people who are not hit by the economic crisis to the extent that they need to delay the purchase of a new car.

“The outlook for the UK car industry is positive as historic weaknesses are no longer a major concern … On top of this manufacturers value the UK car industry’s labour flexibility – a notable difference compared to somewhere like Germany.”

This was posted in Bdaily's Members' News section by Miranda Dobson .