As early as this year (January) Jaguar Land Rover reported record 2017 sales, such headline news boosts the company’s stock value on the international markets, in a way its corporate propaganda using the balance sheet to cloak underlying issues. The biggest issue with Land Rover is that they have been slow to adapt to changing market conditions.
The biggest issue of all is the slow adoption of Hybrid and or EV technology, although it’s true for many other car companies Land Rover has been the slowest of them all. The good news is that Land Rover and Jaguar has a product hybrid/electric pipeline in place.
But is it too late? well, it is never too late, but 90 percent of Land Rover UK sales are diesel powered and with the government clamping down on the sale of new diesel cars with all kinds of environmental fines and taxes Land Rover, UK consumers are jumping ship.
Last week Jaguar updated their sales figures for Q1 2018 and reported a drop in UK sales of 26 percent. Land Rover sales fell by 20 percent. Jaguar/Land Rover combined sales total 621k units globally, domestic sales account for 118,000.
A note of good fortune is that JLR does really good business overseas. However, if we compare BMW’s UK sales for 2017 the German company sold 182k vehicles, it sells 2.3m units globally… every year.
So that brings us back to the headlines, why is Brexit Britain not buying more British?
A note of bad fortune has also hit Vauxhall, new owners, PSA Group, just announced it will not renew 326 dealership contracts putting 3,200 people out of work. This isn’t a surprise, it’s business, it isn’t pleasant for those who lose their jobs but it comes with the territory.
To put it into perspective Vaxhaull have a total of 1,600 UK dealerships, only the best performing will be retained. Don’t be surprised to hear of more closures, and don’t be surprised to hear of future contracts being renewed as business picks up again.
Profit and loss are cyclical for any business, one month can see a spike in sales the following month can see a record low. When the sales are consistently low, cost-cutting is the only way to survive. It’s ruthless but it is a tried and tested business solution.
But the real question is, why has Brexit Britain abandoned British car brands at this most crucial time? It seems economics play an important role in Brexit Britain’s survival, so that begs the question, why vote for Brexit in the first place?