Chip supply issue hits JLR sales, but luxury automaker posts record order book
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Luxury automaker Jaguar Land Rover (JLR) revealed that retail sales for the three-month period through September 30, 2021 continued to be hampered by the impact of the global semiconductor shortage on production , with wholesale sales for the period in line with July forecasts. .
However, underlying demand for Jaguar Land Rover products remains strong with order books at record levels.
The group, which has manufacturing sites in Halewood in Merseyside, and in Solihull and Castle Bromwich in the West Midlands, today released second quarter sales figures. Next month, the group will update the markets with its financial performance for the same period.
Today’s announcement showed retail sales for the second quarter period were 92,710 vehicles, 18.4% lower than the 113,569 vehicles sold in the same quarter last year.
Retail sales were down year-over-year in most regions including North America (-15.6%), China (-6.3%), Europe (-17, 0%) and the UK (-47.6%), but were up abroad. region (+ 10.0%).
Retail sales of all models were down year-over-year, with the exception of the new Land Rover Defender, which sold 16,725 vehicles, up 70.4% year-on-year. other, making it the best-selling model of the group during the quarter.
In line with July forecast, second-quarter wholesale sales totaled 64,032 units, excluding Chinese joint venture, down 12.8% year-on-year.
As with retail sales, wholesale sales are down year on year in all regions except the overseas region (+ 40.5%) and for most models, at the exception of the new Land Rover Defender up 18.0% on 14,305 wholesale sales.
Despite the impact of the semiconductor shortage on production and sales, the company continues to experience strong demand for its products with global retail orders at record levels, exceeding 125,000 vehicles.
JLR said the global semiconductor supply problem represents a significant short-term challenge for the industry that will take time to resolve.
However, he added that it is encouraging that he is still able to increase sales of the Land Rover Defender in the second quarter.
Additionally, JLR said it is delighted to have an order backlog from the record company demonstrating the underlying demand for its products that it will meet when the semiconductor supply recovers.
Commercial Director Lennard Hoornik said: “In early November, Jaguar Land Rover expects to release unaudited results for the three months ending September 30, 2021.
“At the end of the period, the company had around £ 3.8 billion in cash and short-term (unaudited) investments, following the issuance of a $ 500 million bond at eight years at 5.500% and 500 million euros at seven years at 4.5% in July.
“Despite continued semiconductor supply constraints, Jaguar Land Rover expects to post a free cash outflow of less than £ 0.7bn for the quarter, much better than the £ 1bn outflow. initially planned.
“Total cash at the end of the second quarter is expected to be around £ 5.9 billion, including a committed and unused revolving credit facility of £ 2.0 billion.
“Looking ahead, the chip shortage remains dynamic and difficult to predict, however, the company expects semiconductor shortages to gradually ease over the next 12 months from here.”