Jaguar Land Rover posts huge financial loss

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Rediscovery
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Re: Jaguar Land Rover posts huge financial loss

Post by Rediscovery » Mon Oct 28, 2019 5:22 pm

It depends on how sincere they are about the statements made recently by FB.

"We don’t want to be driven by volume. It’s not the measure of success for a premium brand,” Bräutigam said. “We want to build great cars and make money, not just shift units. “It’s more about profit, delivering that and having a sustainable business model. Not just business profits, but added value for the brand as well as the company.”

A cynic might conclude that they've failed as a wannabee volume producer because Speth doesn't understand that brand lotalty in the mid market has to be earned by quality, reliability and service.
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Tata Polishes the Fudge Factory

Post by Google[Bot] » Thu Nov 14, 2019 5:21 pm

Following the £625 UK Government-backed loan Tata has agreed to pump in another $910 million to keep things at least looking ship-shape.
To Polish an Iconic British Brand, Jaguar’s Owner Looks For Help in Germany and China
12 November 2019 - https://fortune.com/2019/11/12/jaguar-land-rover-tata-bmw-geely-brand/

Tata Group, the owner of Jaguar Land Rover, has approached carmakers including China’s Zhejiang Geely Holding Group Co. and BMW AG as it seeks partnerships for the beleaguered British automotive business, people with knowledge of the matter said.

“Carmakers need to invest a lot of money in developing new technology, and Tata doesn’t have deep pockets to keep funding development,” said Deepesh Rathore, an independent auto analyst in Bangalore, India. “You don’t want to be left behind, especially in the luxury segment, and at the same time, Tata doesn’t want to let go of JLR, which is its crown jewel.”

One potential obstacle for any partner with JLR is the British automaker’s financial struggles. Tata has begun to address some of these issues, providing the brand with a $910 million equity infusion to help bolster its balance sheet.
In China, JLR has struggled with quality and dealership issues. The company reported last month that sales had stabilized, helping parent Tata Motors Ltd. post a narrower-than-projected quarterly loss. The British unit is also near completion of a 2.5 billion-pound ($3.2 billion) savings drive that included thousands of job cuts worldwide.

Trojan
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Climate Law Threat to JLR

Post by Trojan » Fri Nov 15, 2019 12:07 pm

9728b64d713e1ad69cc54d84aa60a62f.jpg

JLR’s business model is looking shaky. More than 80% of the vehicles that it sold in Europe last year run on diesel, a technology that’s been undermined by Volkswagen AG’s emissions cheating and the threat of bans in many cities. SUVs make up an even higher percentage of sales. The boom in these vehicles has contributed to a rise in average carbon emissions from carmakers over the past year or two. Last month JLR listed “increasing environmental activism” among its biggest challenges.
Bloomberg: https://finance.yahoo.com/news/climate-crisis-coming-land-rover-070036545.html
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Trojan
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Re: Tata Polishes the Fudge Factory

Post by Trojan » Fri Nov 15, 2019 12:38 pm

Google[Bot] wrote:
Thu Nov 14, 2019 5:21 pm
Following the £625 UK Government-backed loan Tata has agreed to pump in another $910 million to keep things at least looking ship-shape.
To Polish an Iconic British Brand, Jaguar’s Owner Looks For Help in Germany and China
12 November 2019 - https://fortune.com/2019/11/12/jaguar-land-rover-tata-bmw-geely-brand/

Tata Group, the owner of Jaguar Land Rover, has approached carmakers including China’s Zhejiang Geely Holding Group Co. and BMW AG as it seeks partnerships for the beleaguered British automotive business, people with knowledge of the matter said.

“Carmakers need to invest a lot of money in developing new technology, and Tata doesn’t have deep pockets to keep funding development,” said Deepesh Rathore, an independent auto analyst in Bangalore, India. “You don’t want to be left behind, especially in the luxury segment, and at the same time, Tata doesn’t want to let go of JLR, which is its crown jewel.”

One potential obstacle for any partner with JLR is the British automaker’s financial struggles. Tata has begun to address some of these issues, providing the brand with a $910 million equity infusion to help bolster its balance sheet.


In China, JLR has struggled with quality and dealership issues. The company reported last month that sales had stabilized, helping parent Tata Motors Ltd. post a narrower-than-projected quarterly loss. The British unit is also near completion of a 2.5 billion-pound ($3.2 billion) savings drive that included thousands of job cuts worldwide.
BMW boss fuels speculation over Jaguar Land Rover stake

BMW boss Oliver Zipse has fuelled further speculation that the German car titan could snap up a stake in Jaguar Land Rover. They are already teaming up to develop electric cars as the industry adapts to sweeping changes and new rivals such as Tesla. Speaking as he launched a new €200m battery research centre at the company’s Munich base, Mr Zipse, who took the wheel at BMW in August, said: “Co-operation and working together is the new normal in the industry. We are not only working on electric drive trains and internal combustion engines with JLR, but other components. ”

He did not deny industry talk that under-pressure JLR is seeking a partner and BMW is one of the manufacturers it is talking to, saying: “We have made no decision on it – I cannot comment on something that is not decided.”

Business section
Daily Telegraph
14 Nov 2019

It needs to be all or nothing. Then the long-overdue Sun Tsu-style purge can take place: the rotten wood is always at the top.
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Trojan
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JLR Looking for more cash

Post by Trojan » Wed Nov 20, 2019 6:01 pm

Rating Action: Moody's assigns B1 rating to JLR's new bond

20 Nov 2019

London, 20 November 2019 -- Moody's Investors Service has today assigned a B1 instrument rating to Jaguar Land Rover Automotive plc's (JLR, company) new expected €500 million senior unsecured notes due 2024.

RATINGS RATIONALE

The new notes rank pari passu with the existing unsecured financial indebtedness of the company, which continues to represent the vast majority of the company's debt capital structure. The notes are unsecured, but benefit from guarantees of the principal operating subsidiaries. Accordingly, they are rated in line with the existing senior unsecured notes.

JLR reported strong results for the fiscal second quarter to September 2019, including +8% revenue growth, a 4.8% company-reported EBITDA margin improvement and significant reduction in cash outflows compared with the second quarter of the prior fiscal year. As a result, Moody's-adjusted debt/EBITDA has reduced for the first time in several quarters to 8.9x on a last twelve months basis, down from 10.6x as of fiscal year-end March 2019.

While this development could signal the start of a turnaround in performance for JLR, the company will nevertheless face challenges for the remainder of FY20 and FY21 period due to a generally weak market outlook and continued investments to support the transition to greater emission efficiency and electrification (and hence new models), notwithstanding the substantial restructuring programme. Uncertainty from potential Brexit and US tariff developments also remains with the company opting for a one week production shutdown in November across its UK sites. Nevertheless, the strong quarter could be an indicator that leverage has reached its peak.

The strong performance in the second quarter was supported by a rebound in retail volumes in China up 24.3% year-over-year and with total retail volumes down -0.7%, which is the slowest quarterly decline in the last 5 quarters. While this could be a sign of a stabilisation of retail sales, Moody's notes that performance across regions remains uneven and volatile. Retail volume improvement was primarily driven by China and to a lesser extent Europe (+0.9%), while retail volumes in North America were slightly negative. In fact, the UK turned negative (-5.1%) in Q2 and Overseas retail volumes (-19%) have declined substantially in the last 2 quarters.

In the currently challenging market environment, visible aggregate volume growth will be difficult to achieve for JLR in Moody's view. Moody's also notes that the growth in volumes, at least in the second quarter, has been largely reliant on three models: Range Rover Evoque, Range Rover Sport and the Jaguar I-PACE. The success of coming model launches will be critical to growth and Moody's views positively the company's lineup including, in the near-term, the ramp up of the refreshed Land Rover Discovery Sport (not yet on sale in China) and the launch of the new Defender.

JLR has also taken steps to improve its profitability with the company-reported EBITDA margin improving to 13.8% from 9.0% in last year's second quarter. Aside from the better volume performance, additional factors included a favourable model mix and progress under the company's restructuring programme Project Charge, which contributed GBP162 million to profits. The restructuring efforts should continue to further help sustain profit improvements going forward.

Moody's also views positively the sizeable reduction in negative company-reported free cash flow (similar to Moody's definition of free cash flow after capex and interest) to -GBP64 million in the second quarter compared with -GBP623 million for the second quarter of fiscal 2019 and -GBP783 million on a year to date basis. By comparison, in the first half of fiscal 2019 the company reported a -GBP2.3 billion free cash flow and the improvement demonstrates the progress regarding the company's restructuring efforts. Given the seasonal pattern of a typically significantly stronger second half in terms of both profits and cash flows, the company appears on track to achieve significant improvements over last year's cash flow generation. However in line with the company's guidance, company-reported free cash flow is likely to remain negative for both FY20 and FY21, because the company will continue to invest to support new, more fuel-efficient or electric model launches.

Moody's also takes note of the company's additional debt from the GBP425 million (assuming full drawing) receivables facility (GBP297 million drawn at 30 September 2019), the GBP625 million UKEF funding and GBP100 million fleet buyback facility secured in recent months. While this will notably increase Moody's-adjusted debt, Moody's also expects the effect to be largely balanced by the repayment of the $500 million senior notes completed on 15 November 2019 and $500 million senior notes due March 2020. In line with the company's statements, however, JLR may also pursue additional funding options that may lead to further increases in debt.
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Trojan
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Re: Jaguar Land Rover posts huge financial loss

Post by Trojan » Tue Dec 03, 2019 12:48 pm

More Debts to replace expiring debts

Jaguar Land Rover Automotive plc (the “Issuer”), the parent company of the Jaguar Land Rover group of companies and a subsidiary of Tata Motors Limited, has completed the pricing of €500 million Senior Notes due 2024 at a coupon of 5.875% per annum and €300 million Senior Notes due 2026 at a coupon of 6.875% per annum (the “Notes”), which will be guaranteed on a senior unsecured basis by Jaguar Land Rover Limited and Jaguar Land Rover Holdings Limited.

The Issuer intends to use the net proceeds from the issue and sale of the Notes for general corporate purposes. The offering of the Notes is expected to close and the Notes are expected to be issued on or around 26 November 2019.

JLR 21st Nov 2019
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Re: Jaguar Land Rover posts huge financial loss

Post by Trojan » Wed Dec 11, 2019 12:39 am

It emerges that the organisation leading the UKEF-backed £625 million syndicated loan that JLR said* was needed for "general corporate purposes" is Citigroup. Citi was one of the "too big to fail" banks (3rd largest) involved in tbe sub-prime syndicated loans crash, receiving at least $45 billion in US Government handouts. ( https://en.m.wikipedia.org/wiki/Citigroup )

According to yahoo finance:
Citi, together with a syndicate of international banks, completed a £625 million term loan facility with Jaguar Land Rover Automotive plc in October this year. The facility is backed by a £500 million guarantee from UK Export Finance under its new General Export Facility programme (GEF).

The loan will amortize over 5 years and support Jaguar Land Rover’s business as the largest automotive exporter in the UK, including investment in the research and development of next generation electric vehicles and future mobility solutions.

"We are pleased to have been able to support Jaguar Land Rover in successfully concluding this first of its kind UKEF General Export Facility," said Alex Taylor, EMEA Head of Export and Agency Finance, Treasury and Trade Solutions, Citi.

Citi acted as Coordinator and Facility Agent.

Mandated Lead Arrangers and Lenders were Barclays Bank plc, Citi, HSBC Bank plc, J.P. Morgan, National Westminster Bank plc and Standard Chartered Bank.

About Citi Treasury and Trade Solutions

Citi Treasury and Trade Solutions (TTS) can help to enable our clients' success by providing an integrated suite of innovative and tailored cash management and trade finance services to multinational corporations, financial institutions and public sector organizations across the globe. Based on the foundation of the one of the industry's largest proprietary network with banking licenses in over 90 countries and globally integrated technology platforms, TTS continues to be a leader in offering one of the industry's most comprehensive range of digitally enabled treasury, trade and liquidity management solutions.

A few biographical snippets since 2010 (from wiki).

On October 19, 2011, Citigroup, the parent of Citibank, agreed to a $285 million civil fraud penalty after the U.S. Securities and Exchange Commission accused the company of betting against risky mortgage-related investments that it sold to its clients.

In 2014, Citigroup announced it would exit retail banking in 11 markets, primarily in Europe and Central America. In September 2014, it exited the Texas market with the sale of 41 branches to BB&T. In September 2015, the bank announced that it would close its 17 branches in Massachusetts and end sponsorship of a theater in Boston.

In 2015, the bank was ordered to pay $770 million in relief to borrowers for illegal credit card practices. The Consumer Financial Protection Bureau said that about 7 million customer accounts were affected by Citibank's "deceptive marketing" practices, which included misrepresenting costs and fees and charging customers for services they did not receive.

On March 1, 2017, an article in The Economic Times of India stated that Citibank may close its 44 branches in India, as digital transactions made them less necessary. The articles wrote that Citibank was “India’s most profitable foreign lender”.

On March 20, 2017, The Guardian reported that hundreds of banks had helped launder KGB-related funds out of Russia, as uncovered by an investigation named Russian Laundromat. Citibank was listed among the American banks that were named as having handled the laundered funds, with banks in the US processing around $63.7 million between 2010 and 2014. Citibank was listed as having processed $37 million of that amount, with others including Bank of America, which processed $14 million. as the bank “handled $113.1 million” in Laundromat cash.

* Q1 Results Conference exchange, previously reported....

Stephanie Vincent JP Morgan:
My second question is on the export loan, the £625m. Is that specifically ring-fenced for projects for EVs, for example, or can you use that for general corporate purposes as well. For example, if you did need some extra liquidity around a No Deal Brexit, could you use that facility to help boost liquidity?


B. Birgbauer
Okay, and on the second question, Stephanie, the answer is the loan facility would not be ring-fenced. It would be general corporate purposes. It is intended to be a five-year amortising loan. It’s likely we would draw it up front in totality.


Seems like we're all investors in JLR now. :lol:
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