JLR Claims Aluminium Shortages Dragging On Profits

According to Jaguar Land Rover (JLR), the company's profits have suffered recently due to a shortage of aluminum that has slowed down the production of cars. The Coventry-based luxury carmaker claimed that although the issues were short-term, they had caused a 10% decline in earnings.

Between July and September, it reported a pre-tax profit of £398 million, which was tenths less than the same period the previous year. The most recent quarter's revenues came to £6.5 billion, which was 6% less than the previous year. The Range Rover manufacturer claimed that production had been hampered by supply disruptions in recent months at its main aluminum supplier.

Additionally, it disclosed that over 6,000 vehicles that require additional quality control inspections were temporarily placed on hold. Manufacturers of aluminum have reported that flooding caused by heavy summer rainfall in Europe has stopped production at important plants.

According to JLR CEO Adrian Mardell, employees "responded brilliantly" to the supply shortages, allowing the company to "deliver as many orders as possible to clients."

JLR assured that things should get better in the upcoming months, which will result in a significant increase in production and wholesale volumes.

In the first six months of the year, JLR's profits reached £1.1 billion, a quarter increase from the previous year. The company claimed that record sales of its Range Rover cars were the primary factor in its largest profit in almost ten years last year.

More than 2,900 orders have been placed for the newly released Land Rover Defender Octa model, which retails for £145,000. This information was disclosed on Friday. Additionally, there are roughly 48,000 individuals on the waiting list for the new Range Rover electric vehicle.