Sales of Jaguar Land Rover cars have fallen sharply, taking the firm into a loss for the three months to the end of September. The firm blamed lower sales in China for the decline, as well as uncertainty in Europe over diesel and Brexit.
Jaguar made a pre-tax loss of £90m for the quarter, compared to a profit for the same period a year ago. JLR said as a result, it was launching a “far-reaching” cost-cutting programme to improve profitability.
Jaguar Land Rover said it would be reducing spending by £500m this financial year and next, with the aim of improving profitability by £2.5bn.
The new strategy would “lay the foundations for long-term sustainable, profitable growth”, said chief executive Ralf Speth.
The firm’s Solihull plant, where it makes Range Rover and Jaguar models, is currently closed for a two-week shutdown in response to “fluctuating demand”. That follows a move to a three-day week at JLR’s Castle Bromwich plant.