Just reported by Financial Times

Jaguar Land Rover has written down the value of its cars and plants by £3.1bn after some of its newest models saw steep falls in demand.

Britain’s largest carmaker posted a £3.4bn loss for the three months to December 31 — its third consecutive lossmaking quarter — amid a further slowdown in diesel sales and lacklustre performance in China.

It took a major accounting charge on several areas of the business, in anticipation of further deterioration in its sales.

Even with the charge stripped out, the business lost £273m in the three months.

Quarterly revenues fell from £6.3bn to £6.2bn, while the group saw car sales in China fall by 47 per cent.

In one of its non-cash accounting charges, the company wrote down around £1.5bn from the value of its past product development in a sign it will not claw back the investment it made into the vehicles because of poor sales.

Demand for Jaguar saloons have been far weaker than the company anticipated, and several of its Range Rover models compete for the same customers, leading to cannibalisation. Sales of both the Jaguar XJ flagship saloon and the smaller Jaguar XF halved compared to the same quarter a year earlier.

The group also wrote down around £1.5bn from the value of its plants and other equipment.

Diesel sales, which account for 90 per cent of its UK and European business, are falling sharply, meaning the company will not recoup all of the investment made into its new engine plant at Wolverhampton.

It also opened a new plant in Slovakia last year, which will become a European anchor for the business but is so far only producing the underperforming Land Rover Discovery model.

Sales of the Discovery — one of JLR’s newest models — fell in the last quarter by 40 per cent compared to a year earlier.

Many of its most recent models, such as the Range Rover Velar and the Jaguar F Pace, both sports utility vehicles, saw sales fall by a third, in part because they are heavily reliant on diesel buyers.

Of JLR’s 13 models across its two brands, only four saw sales grow — the electric I Pace and the Jaguar E Pace, both made in Austria by a contract manufacturer, and the Range Rover and Range Rover Sport vehicles.

The dismal figures pile more pressure on the company, which is already planning to cut 4,500 management jobs and revamp its model line-up in a bid to save £2.5bn of costs and aid a return to profitability.

JLR chief executive Ralf Speth said: “This is a difficult time for the industry, but we remain focused on ensuring sustainable and profitable growth, and making targeted investments, that will secure our business in the future.”

Mr Speth previously warned that the business would be forced to make even deeper cuts in the event of a no-deal Brexit, which he estimates will cost the company more than £1bn a year. 3 x FL1 2 manual + 1 auto
5 x FL2 4 manual + 1 auto
Now Discovery Sport P250 MHEV SE

Got an iron in the fire for a Jag. Has 50 miles on the clock and dropped in price by 7K last night. FL2 MY10 TD4 GS traded in at 2 years
FL2 MY13 TD4 GS Current

Without listening to the Chairmans official statement on this, I can guarantee that within his speech will be at least one of the following:

1. Diesel-demonisation
2. Brexit
3. Headwinds
4. Uncertainty worldwide

What he won't mention, is the appalling build quality of L550/L560/L494/L538 and the hugely dissatisfied customers that have seen their (overpriced) vehicles spend countless days off the road with DPF/SCRF/Oil Dilution issues. It's all to do with "driving style" apparently....suddenly EVERYBODYS has changed en-masse!

Yorky Bob wrote:

Got an iron in the fire for a Jag. Has 50 miles on the clock and dropped in price by 7K last night.

Not many moons ago I remember asking % of discount they would do for me on a new vehicle & the sales guy just chuckled wonder what his reaction would be today

SouthamFL2 wrote:

Without listening to the Chairmans official statement on this, I can guarantee that within his speech will be at least one of the following:

1. Diesel-demonisation
2. Brexit
3. Headwinds
4. Uncertainty worldwide

What he won't mention, is the appalling build quality of L550/L560/L494/L538 and the hugely dissatisfied customers that have seen their (overpriced) vehicles spend countless days off the road with DPF/SCRF/Oil Dilution issues. It's all to do with "driving style" apparently....suddenly EVERYBODYS has changed en-masse!

I was under the impression that the Oil Dilution issue on the DS 2.0 was due to the failed DPF cycle. And the reason for failure is that the DPF is situated to far away from the engine, this then means that the DPF is unable to get to the temperature needed to burn the nasty particles trapped in the filter. The car then repeats the regen process until the oil becomes too diluted with fuel.
So you have to have an oil change more often. So I wonder how long the DPF filters will last in the DS before it needs replacing as the failed regen cycles will not have burnt the particles.

RogB wrote:

Yorky Bob wrote:

Got an iron in the fire for a Jag. Has 50 miles on the clock and dropped in price by 7K last night.

Which model Yorky ?

F Type that was registered in last Week of August.
But the wife will prevaricate and it will be gone by the weekend. Audi want her TT back for a grand more than "we rob you of your car" and thats before they try and knock you down.

Shame it will be gone as the first 2 years of my 5 year apprenticeship in 1967 was on Jags.

Click image to enlarge

 FL2 MY10 TD4 GS traded in at 2 years
FL2 MY13 TD4 GS Current

Told you so:

Hi Bob,

Unfortunately the car is sold now. I am still looking for a new vehicle for you. Is there any options is particular that your wife must have?

Kind Regards,

Vikki FL2 MY10 TD4 GS traded in at 2 years
FL2 MY13 TD4 GS Current

Suckfish wrote:

I was under the impression that the Oil Dilution issue on the DS 2.0 was due to the failed DPF cycle. And the reason for failure is that the DPF is situated to far away from the engine, this then means that the DPF is unable to get to the temperature needed to burn the nasty particles trapped in the filter. The car then repeats the regen process until the oil becomes too diluted with fuel.
So you have to have an oil change more often. So I wonder how long the DPF filters will last in the DS before it needs replacing as the failed regen cycles will not have burnt the particles.

I imagine the jag xf does not have a load on the forum is because the dpf is situated in the right position for the regen to work, ie closer to the engine.
That’s the same with the F-pace, dpf closer to the engine.

I imagine that it will not do the resale value much good once more and more ds are out of warranty.

From what I can see on forums Dondiddy is right to say that oil dilution is a generic problem (many engines from many manufacturers) and effects cars driven on lots of cold start short journeys.

Take a look at this VW Forum
http://forums.tdiclub.com/showthread.php?t=346781

Southam you will be pleased to note that Honda Swindon has not blamed it's job loses on Brexit.
https://www.mirror.co.uk/money/breaking-ho...s-13964874

I am wondering if cars have just become too complicated and expensive, and dare I say it reliable.
We no longer can afford or need to change our cars every 3 - 5 years. FL2 XS SD4 Auto 2010 2012-2017 (21k - 91k miles) (MY2011)
FL2 Metropolis SD4 Auto 2014 2017- (16k - 76k+ miles) (MY2015)

Begs the question why they can't all utilise the same architecture doesn't it? Internal politics no doubt.....rather than bullsiht excuses such as "Brexit", "Headwinds" and "Diesel demonisation"

@IanMetro, try telling the JLR employees that are shuttling up and down the M6 between Coventry and Halewood racking up 1000+ motorway miles a week, and having to have their oil changed every couple of months! It's not "driving style", the whole Euro 6 debacle is a disaster! It's not just LR with problems, granted, but Jaguar have next to no issues whatsoever...how can this be?

I was always under the impression that Land Rover promoted long-term ownership...is this not the case anymore? Are we all supposed to PCP our vehicles now, and chuck them away every 3 years?

Its a pity that they didn't get a proper small FL2'ish' sub £20K SUV on the market when they axed the FL2 - might have sold like hotcakes. LR too niche now - most models looking similar and pricing way out of most people's pockets.

Most manufacturers have at least one SUV in their range now and they are proving more popular than their saloons / hatchbacks so the demand is there - just not over-priced ones!

The Defender cannot come soon enough - but at circa £35K is it a step too far??? Now - 2017 BMW X3 M Sport Carbon Black
Gone - 2014 BMW X3 M Sport Space Grey, faultless!
Gone - 2011 Freelander 2 SD4 HSE Bali Blue with xenons
Gone - 2008 Freelander 2 TD4 HSE Rimini Red with bodykit

Most manufacturers are introducing vehicle platforms which will accept all Petrol, Diesel, Mild Hybrid, Hybrid, Battery Hybrid, and Battery Electric engines.

So in the future most cars should come with a range of methods of propulsion and we should be able to choose which is best for our usage.

For anyone wanting a car for lots of short journeys, the diesel is the wrong choice, and a Battery Electric or Battery Hybrid (PHEV) would be better.

A Diesel Mild Hybrid would be best for long journeys.

Of course that is until you look at the list price.

Perhaps we need to go back to basics, i.e. everything as extras.

PS I added a heater to my first car, I think it cost me an extra £18. FL2 XS SD4 Auto 2010 2012-2017 (21k - 91k miles) (MY2011)
FL2 Metropolis SD4 Auto 2014 2017- (16k - 76k+ miles) (MY2015)