Tata-owned JLR to cut production at UK factories till spring, reports say
The Guardian citing sources. The carmaker has reportedly decided to cut production at factories in Solihull & Halewood between January & March.
The auto industry globally has suffered from semiconductor shortages and supply issues since the Covid-19 pandemic broke out in early 2020.
Following the news, the stock of Tata Motor dipped before heading towards the session’s peak.
Semiconductor shortages have left customers for $100,000 Range Rovers waiting more than a year for their vehicles, with sales suspended for some variants. In the quarter ended September, the carmaker reported deliveries to dealerships that trailed guidance by 17%.
JLR has reported losses for seven consecutive quarters, according to Bloomberg data, most recently reporting a loss before tax of £173 million ($206 million) in the three months ended September. The company said Nov. 9 that it forecasts an improvement in production and sales volumes in the six months to March 2023, and said free cash flow may approach break-even for the full financial year.
In the September quarter, JLR reported revenue of 5.3 billion pounds and its wholesale volumes (excluding China JV) rose 18 per cent year-on-year to 75,307 units.
Tata Motors on Wednesday said Jaguar Land Rover Chief Executive Officer Thierry Bollore has resigned from the post citing personal reasons.
Tata Motors, in a regulatory filing, said Bollore has put in his papers. His last day at the British marquee brand will be December 31, 2022.
“Taking over from today as Interim CEO at Jaguar Land Rover (JLR) will be Adrian Mardell,” it added.
Tata Motors Ltd closed Q2FY23 with a consolidated net loss of Rs 898.35 crore. The company said for Q2FY23, it had earned an operational revenue of Rs 78,846.92 crore (last year Q2 Rs 60,435.92 crore) and a net loss of Rs 898.35 crore (Rs 4,415.54 crore).
The JLR is continuing to focus on signing long term partnership agreements with chip suppliers which is improving visibility of future chip supply.
According to Tata Motors, the overall demand continues to remain strong, however will remain a key monitorable in wake of global uncertainties.
Improving chip supply and cooling commodity prices will aid revenue and margins recovery.
(With agency inputs)
For all the latest Automobile News Click Here