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Recently, a number of media reported that Jaguar Land Rover had taken layoffs and salary cuts due to the epidemic. It is reported that Jaguar Land Rover will temporarily lay off about 20,000 employees, accounting for half of the total number of employees affected by the epidemic. At the same time as the layoffs, Jaguar Land Rover will also take pay cuts and delay the payment of management salaries for the next three months.

In response to media reports, Jaguar Land Rover responded that these employees were not temporarily laid off, but without pay. These people are still our employees, but they are temporarily unable to work because of the epidemic. The three-week unpaid stay is only in the UK, and the government will give 80% of the wage subsidy during this period. In addition, it is not a pay cut for management, but a moratorium on pay, which has no impact on China.

Although Jaguar Land Rover has clarified that it is not layoffs and pay cuts, the UK-based carmaker is not optimistic about the current situation. Shortly before the suspension and suspension of pay, Jaguar Land Rover handed over its report card for fiscal year 2019 to 2020, enough to show that the epidemic has had a significant impact on the carmaker.

On April 18, Jaguar Land Rover announced global sales for the fiscal year 2019 / 2020 (April 2019-March 2020). Data show that Jaguar Land Rover sold 508659 vehicles worldwide in the 2019-2020 fiscal year (April 2019 to March 2020), down 12.1 per cent from a year earlier. Of these, Jaguar Land Rover worldwide sold 109869 vehicles in the fourth quarter of the 2019 fiscal year (January-March 2020), down 30.9% from a year earlier. Jaguar Land Rover said the COVID-19 epidemic had a significant impact on sales in the fourth quarter of the 2020 fiscal year.

In terms of brands, global sales of Land Rover fell 7.7 per cent to 368000 vehicles in fiscal 2020, while Jaguar global sales fell 22 per cent year-on-year to 140000 vehicles. In the fourth quarter, Jaguar global sales fell 42.6 per cent year-on-year to 28000 vehicles, while Land Rover global sales fell 25.6 per cent to 81000 vehicles.

From a specific market point of view, Jaguar Land Rover in North America, China, the United Kingdom and other markets are showing a decline. Among them, sales in North America fell by 7.5%, in the UK by 9.6%, in Europe by 16.1%, in China by 8.9% and in overseas markets by 20.3%.

Jaguar Land Rover made a "turnaround" in the third quarter of fiscal 2019. Pre-tax profit in the third quarter was 318 million pounds ($414 million), up 591 million pounds from a year earlier, while revenue rose 2.8 percent to 6.4 billion pounds ($8.3 billion). Jaguar Land Rover global CEO Schweder said: "thanks to the expansion of the Chinese market, enhanced product mix, lower operating costs (including project costs) and favorable foreign exchange, Jaguar Land Rover continues to achieve both revenue and profit growth.

It is enough to see the importance of the Chinese market to the development of Jaguar Land Rover. However, due to the outbreak in China, the car company basically shut down in February, resulting in an 85 per cent drop in sales in China that month, a loss that Jaguar Land Rover cannot make up for. At present, with the improvement of the domestic epidemic, Jaguar Land Rover's sales have increased significantly in March, and the passenger volume of its dealers has also increased significantly.

Affected by the epidemic, the British carmaker cut its sales forecast for 2020 from 510000 to 450000. For Jaguar Land Rover, it will be difficult for Jaguar Land Rover to survive the crisis without sufficient cash flow under the impact of the epidemic. Earlier, Jaguar Land Rover announced a series of measures to reduce costs and increase efficiency to ensure adequate cash flow, and these measures have proved to be effective, but under the influence of the epidemic, even with government subsidies, the future of Jaguar Land Rover, which does not have enough money, is also uncertain.

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