Luxury car manufacturer Jaguar Land Rover posted its third straight full-year loss after being hit by accusations related to its new electric vehicle strategy amid warnings of possible supply chain issues.
Announcing its annual results for the year ending March 31, 2021, the manufacturer said it had recorded a pre-tax loss of £ 861million.
This follows a loss of £ 422million in 2019/20 and a loss of £ 3.6 billion the year before.
This year’s figures were struck by the announcement of its Reimagine strategy in February which will see all its vehicles available in pure electric by the end of the decade.
This resulted in a one-off charge of £ 1.5bn, including £ 534 million for “restructuring” payable in its current fiscal year, which caused it to fall to a loss.
BusinessLive is your home for business news from across the country – and you can stay in touch with all the latest news through our email alerts.
You can sign up to receive daily morning newsletters from each region we cover and weekly email newsletters covering major economic sectors of manufacturing at Technology and business. And we’ll send out last minute alerts for any stories we think you can’t miss.
Visit our messaging preference center to subscribe to all the latest BusinessLive news.
Revenue for 2020/21 was £ 19.7 billion, up from £ 23 billion in 2019/20, while retail sales also fell 13.6% to 439,588 cars.
It also announced its fourth quarter results which saw JLR record a pre-tax loss of £ 952million, down from a loss of £ 501million a year ago.
Fourth quarter revenue was £ 6.5bn, an increase from £ 5.4bn in 2019/20, while car sales rose 12.4% to 123,483 vehicles.
The company said it had strong sales in China and of the new Land Rover Defender globally, with 16,963 units sold in the last quarter and 45,244 in the full year.
JLR is headquartered in Coventry and has operations in the West Midlands and Halewood, Merseyside.
The manufacturer praised the “encouraging” rates of covidus vaccinations in terms of supporting the recovery of the global economy, but said cases were still high in many markets.
Supply chain issues, especially for semiconductors, have become more difficult to mitigate, its annual report added, and are now impacting production plans for the current quarter.
“The company is working closely with relevant suppliers to resolve issues and minimize the impact on customers,” JLR added.
Last month the company announced he was temporarily interrupting production at its factories in Halewood and Castle Bromwich, Birmingham, due to a shortage of computer chips.
Managing Director Thierry Bolloré said: “During my first round of annual results as Managing Director, I was encouraged by the resilience and strong recovery of the company during a particularly difficult year.
“Despite the pandemic, this year has also been marked by a significant positive change which culminated in February with the launch of our Reimagine strategy focused on reinventing our iconic British brands for a future of modern luxury by design.
“Our strategy is ambitious and it will make us more agile, efficient and sustainable. Although it is still in its infancy, we have made significant progress in its implementation.
“It reaffirmed my confidence that we have the right strategy, the right people and the right product plans to achieve our goals.
“Jaguar Land Rover is well positioned to emerge from the pandemic as a stronger, more resilient company able to navigate and capitalize on the opportunities ahead.”