NewsReporter
09-04-2004, 05:29 AM
Land Rover has returned to profit, the FT reports, for the first time since it was bought by Ford four years ago. Its finances have been kick-started back into the black by the launch of the latest-generation Range Rover, which is a high-profit model, and the company says that the launch of the latest Discovery is expected to bring further improvement. Cost-cutting measures, such as streamlining distribution and back-office functions, are also attributed as factors. The pre-tax profit of £7.9m has made Land Rover able to inject over £100m into its struggling pensions fund for workers. Last year, Land Rover reported losses of £5m, and £302m the year before.
However, an announcement on the future of the Solihull production plant, which employs 8000 people in the Midlands, has been deferred by a week to give managers and union representatives more time to produce their plan for improving quality and productivity and reducing costs. Production of the next-generation Freelander is to be moved to Halewood, where there is spare capacity at the Jaguar plant, and Ford is threatening to move further production to the USA.
Mark Fields, the head of Ford's Premier Automotive Group, has called for Land Rover to match efficiency and quality levels at Jaguar's factories within three years, and to be the equal of other luxury car brands within five years. He told the press today: "The team has done a good job, but not good enough. If they don't deliver, the future of Solihull will be less secure. There can be no half-measures." PAG has just reported a $362m second-quarter loss, with Jaguar sales flagging.
Source: 4Car
However, an announcement on the future of the Solihull production plant, which employs 8000 people in the Midlands, has been deferred by a week to give managers and union representatives more time to produce their plan for improving quality and productivity and reducing costs. Production of the next-generation Freelander is to be moved to Halewood, where there is spare capacity at the Jaguar plant, and Ford is threatening to move further production to the USA.
Mark Fields, the head of Ford's Premier Automotive Group, has called for Land Rover to match efficiency and quality levels at Jaguar's factories within three years, and to be the equal of other luxury car brands within five years. He told the press today: "The team has done a good job, but not good enough. If they don't deliver, the future of Solihull will be less secure. There can be no half-measures." PAG has just reported a $362m second-quarter loss, with Jaguar sales flagging.
Source: 4Car