Brexit is cause for concern, too

Jaguar Land Rover showed mix results in the last quarter due in part to the effects of Brexit. On a positive note, global sales improved 16 percent, and Jaguar’s volume jumped 76 percent to 31,800 units in part due to the F-Pace’s red-hot popularity, and Land Rover gained four percent with 100,900 deliveries. It was also the first time ever Land Rover delivered over 100,000 units in a three-month period.

While these sales figures look good, they represent JLR’s slowest growth in the last three quarters, according to Automotive News Europe, and there’s even worse news financially. Profit after taxes amounted to 304 million pounds (approx. $519 million CAD) versus 492 million pouinds (approx. $840 million CAD) at present rates in the same quarter of 2015. Brexit is largely to blame because the devalued pound cost the company 207 million pounds (approx. $355 million CAD) in losses due to poor exchange rates.

In the United States, sales are outpacing the global numbers. JLR has delivered 57,112 vehicles for the year through July, which is a 23-percent boost over the same amount of time in 2015. Specifically, 14,389 vehicles in that volume were from Jaguar, and 42,723 belonged to Land Rover. According to Automotive News Europe, Land Rover has increased its incentive spending in the region by 51 percent to spur more customers toward its luxury SUVs. In Canada, JLR has sold a total of 6,777 vehicles in the first seven months of the year, which is up from the 4,774 vehicle sold in the same time period last year.

Britain is a major automotive market both in terms of sales and production. The country's decision to leave the European Union has hurt many firms. For example, PSA Group (Peugeot Citroën) opted to raise prices on its vehicles there recently. Ford estimated Brexit could cost the automaker $500 million through 2017.

Source: Jaguar Land Rover, Tata, Automotive News Europe

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