Jaguar Land Rover posts huge financial loss

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DiscoDriver

Re: Jaguar Land Rover posts huge financial loss

Post by DiscoDriver » Tue Jul 16, 2019 6:02 pm

It will support Jaguar Land Rover’s continued investment into research and development of the design and manufacture of next generation electric vehicles and future mobility solutions.
https://www.jaguarlandrover.com/news/20 ... t-facility


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Taxpayer to guarantee £500m JLR loan

Post by TeddyBear » Tue Jul 16, 2019 7:23 pm

In 7 months all of this money will be gone (and more besides) as JLR is obliged to repay £786 million of bond capital. That's why the loan isn't connected with EV or battery manufacture and why both the company and UKEF were at pains to make that point clear. At the same time JLR is cash-flow negative and faces a decline in sales of serious proportions.

The £625 million - assuming the UK Government support is enough to secure its approval - will be transferred to JLR's bank account before the end of September but it won't have time to get comfortable. This is because at the end of October 2019 £393 million of it will be needed immediately to settle bond debts, leaving a balance of £232 million. At the end of February 2020 another £393 million of bond capital is due to be paid back which will take all of the balance plus another £151 million.

The Daily Telegraph
Spokesmen for both JLR - which posted a £3.6bn annual loss in May - and UKEF said there was no link between investment in Castle Bromwich decision and the guarantee.

“They are completely independent. We are investing to build a sustainable business,” said a JLR spokesman, adding the company’s long product planning cycles meant making decisions based on government support was “impossible”. The new loan facility is expected to be used across JLR, with no single site or area being the focus of the financing.


DiscoDriver

Re: Jaguar Land Rover posts huge financial loss

Post by DiscoDriver » Tue Jul 16, 2019 8:19 pm

Jaguar Land Rover, the UK’s largest automotive exporter, will receive a £500 million guarantee from UK Export Finance (UKEF) for a planned £625 million loan facility from commercial banks.

It will support Jaguar Land Rover’s continued investment into research and development of the design and manufacture of next generation electric vehicles and future mobility solutions.
Source: JLR

https://www.jaguarlandrover.com/news/20 ... t-facility


Jaguar Land Rover receives £500m government loan guarantee for EV production

https://www.autocar.co.uk/car-news/indu ... production


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12% drop in sales - Q1 details

Post by TeddyBear » Tue Jul 16, 2019 10:50 pm

Compared to a year ago, during the first quarter JLR sold 16,897 fewer vehicles with China (-29%) and "Overseas" (-20%) responsible for most of the shortfall. Last year 145,510 vehicles were sold creating £5,222 million of revenue but total expenses of -£5,486 left the company with declared losses of £264 million. However....

During the quarter the company said that it spent £525 million on R&D, of which £426 million (81%) was capitalised. Excluding this allocation of R&D to the balance sheet the effective operating loss for the quarter was £690 million, or 13.2% of turnover. We shall see in a few days what effect the potential loss of a further 11.6% of revenue is going to have on this already precarious financial situation.

Project Accelerate doesn't appear to have produced much as yet. We'll see shortly how well they are getting on with Project Charge when the financial report is published. Fingers crossed for JLR and all its workers but I think I am going to hold on to my cash for a while longer.

Q1-2020.PNG



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Re: Jaguar Land Rover posts huge financial loss

Post by Dashnine » Tue Jul 16, 2019 11:10 pm

These articles and opinion make JLR sound like the same as the demise of MG Rover with their folly projects (MG SVR and Mustang engined saloons), do people seriously think it’s the same kind of situation and therefore a risk to a investment in a single car? At least JLR cancelled their follys, the C-X75 and the two door Range Rover Coupe, but what of the Defender....

In other news, June’s figures look quite good in comparison to previous months.
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Re: Jaguar Land Rover posts huge financial loss

Post by TeddyBear » Tue Jul 16, 2019 11:59 pm

Dashnine wrote:
Tue Jul 16, 2019 11:10 pm
In other news, June’s figures look quite good in comparison to previous months.
Particularly the first two Defender sales.... :D


DiscoDriver

Re: Jaguar Land Rover posts huge financial loss

Post by DiscoDriver » Wed Jul 17, 2019 6:21 am

I assume they were 2 of these:

DEFENDER WORKS V8 70TH EDITION

https://www.landrover.co.uk/explore-lan ... derv8.html


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Re: Jaguar Land Rover posts huge financial loss

Post by Kip Hunter » Wed Jul 17, 2019 10:05 am

Great thread, penetrates the smoky mirrors. It's simple, Mrs May is making last minute ( for her) politics out of a desparate need for dollars by a business that left it too late to switch from diesel. They had to do this because if they touch the £1.9b credit facility everybody knows it's final curtain time. Go back to 09.02.2019 for the insight.
Jaguar Land Rover, reeling from a $4 billion writedown, a slump in China sales and uncertainty around Brexit, said conditions aren’t right for it to borrow from the bond market and that it’s seeking alternative funding.

The luxury automaker needs to raise $1 billion within 14 months to replace maturing bonds, while feeding an investment program for electric cars that’s burning through cash. To support its needs, JLR could increase a receivables facility or turn to other bank financing, with further options including leasing assets and tapping export credit, Treasurer Ben Birgbauer said in an interview.


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Fitch downgrades JLR debt to BB- Negative Outlook

Post by TeddyBear » Thu Jul 18, 2019 12:57 am

Fitch Ratings - London - 16 July 2019:
Fitch Ratings has downgraded the Long-Term Issuer Default Rating (IDR) and senior unsecured rating of Jaguar Land Rover (JLR) to 'BB-' from 'BB'. At the same time Fitch has placed the IDR on Negative Outlook, removing it from Rating Watch Negative where it was placed on 4 February 2019.

The downgrade reflects the weakening of JLR's business profile as risks rise in its markets, particularly in technology requirements as well as its investment in new models and platforms. The prospect of a disorderly Brexit and the spectre of US tariffs on car imports from Europe are additional risks. Fitch expects JLR's negative free cash flow (FCF) will continue until financial year to end-March 2021 (FY21) reflecting its intensive investment programme in electric powertrain, model replacement and new chassis architecture.

The Negative Outlook reflects the risk that Brexit and tariff risks are realised and have a significant further negative effect on JLR's financial structure and profitability. The ratings could also be lowered if JLR's investment in future fleet mix and new technologies does not offset declines in the global auto market, reducing JLR's ability to increase its revenues.
Full Report


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Fitch downgrades JLR debt to BB- Negative Outlook

Post by TeddyBear » Thu Jul 18, 2019 2:09 am

Fitch Ratings - London - 16 July 2019:
Liquidity is more than sufficient to cover short-term maturities which consist of a USD500 million bond maturing in November 2019 and a USD500 million bond maturing in March 2020. However, the company's consistently negative Free Cash Flow means that additional debt will need to be raised in 2019 in order to maintain a cash balance at the target of 12-15% of revenue. JLR has recently announced a USD700 million receivables financing facility and a GBP500 million UK export finance guarantee which we expect to support an additional loan facility. Fitch restricts GBP500 million of cash to account for intra-year working capital volatility.


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