It seems that Jaguar Land Rover has recovered from the recession in style by posting a record annual profit figure of £1.1billion for the previous financial year. The figure is impressive but it's even more so when considered against the fat that JLR made just £32m profit last year and made a loss of £281m in the first 10 months under its current owners, Tata Motors.
The record profit figures are partly a result of the success of the Jaguar Land Rover brands in China and India where sales have increased by 33% and 61% respectively in markets where the British-built cars are seen as status symbols in places like China and India. The cars in China costing almost twice as much as they do in the UK because of local taxes. Impressive sales figures have also been returned from Russia and Germany. In the UK, more Land Rovers were sold in March this year than any other month in the company's 63-year history. These impressive results have lead to plans for a new Jaguar Land Rover engine plant to be constructed in the UK that could create around 1,000 new jobs.
The future looks set to get even brighter for the British firm too, with JLR boss Dr. Ralf Speth confirming that, with the backing of Tata, the company has plans for what it calls 'new product actions' for up 40 new models over the next five years. Among them will be the next generation Range Rover, a hybrid XJ, a two-seater Jaguar sports car and the much awaited, all-new Land Rover Defender. A spokesman for Jaguar Land Rover said that a billion pounds a year is being spent on product creation, with British-based research and development.
The JLR success is also having a beneficial knock-on effect in the car component industry. Sertec Engineering in Birmingham has been awarded an extra £10milion of work a year by JLR to produce a number of parts for the new Range Rover Evoque. As a result, Sertec has recruited 40 extra staff to cope with the workload. Sertec managing director Grant Adams said, 'We are so pleased to be associated with such a successful company. We all remember the bad times but the change has been so dramatic. In all, we now have £40m a year of work from Jaguar Land Rover alone. Tata has done a phenomenal job.