Jaguar Land Rover (JLR) has reported a steep decline in profits for the quarter ending June, as the British luxury carmaker contends with the impact of U.S. trade tariffs and weaker global demand.
Underlying pre-tax profit fell by 49% to £351 million, while revenue dropped 9% to £6.6 billion. The company attributed the decline in part to a temporary suspension of exports to the U.S. and the planned phase-out of older Jaguar models ahead of a new electric vehicle lineup due next year.
JLR said the U.S. tariffs had a “direct and material impact on profitability and cash flow,” though it welcomed the recently concluded UK-U.S. trade deal, which is expected to significantly reduce tariff-related costs in future quarters.
Chief executive Adrian Mardell described the quarter as being marked by “challenging global economic conditions” and praised both the UK and U.S. governments for their swift action:
“We are grateful to the UK and US governments for delivering at speed the new UK-US trade deal, which will lessen the significant US tariff impact in subsequent quarters, as will, in due course, the EU-US trade deal announced on July 27.”
The carmaker, owned by India’s Tata Motors, recently announced plans to cut up to 500 UK-based management roles — around 1.5% of its domestic workforce — as part of ongoing cost-efficiency efforts.
