: LR Now Very Profitable


RayCee
06-10-2005, 20:52
http://www.freep.com/money/autonews/landrover6e_20051006.htm

In part: These are good, profitable times for the brand Ford purchased five years ago for just under $3 billion from BMW... In fact, Taylor maintains that Land Rover, which doesn't publicly share its financial results, is one of the success stories in the auto industry, turning from losses to "significant profits." U.S. sales ...are up 31.9% this year, defying the overall SUV market, which is down 7.9% during the same period. The performance was similar on a worldwide basis during the third quarter. And sales of Land Rover vehicles are growing so fast in the United States that the U.S. might unseat the United Kingdom as the top market for the brand this year.
"I can't build enough cars," said Taylor, a 45-year-old British native whose accent and history seem to fit the brand's identity.
On going Diesel in the US: Taylor said the division is trying to bring diesel engines to the U.S. market as soon as possible in an effort to improve the fuel economy of the Land Rover lineup,
And this was interesting: it's also thinking about offering an SUV smaller than its mid-size Freelander.

MGROVERnut
06-10-2005, 22:21
http://www.freep.com/money/autonews/landrover6e_20051006.htm

In part: These are good, profitable times for the brand Ford purchased five years ago for just under $3 billion from BMW... In fact, Taylor maintains that Land Rover, which doesn't publicly share its financial results, is one of the success stories in the auto industry, turning from losses to "significant profits." U.S. sales ...are up 31.9% this year, defying the overall SUV market, which is down 7.9% during the same period. The performance was similar on a worldwide basis during the third quarter. And sales of Land Rover vehicles are growing so fast in the United States that the U.S. might unseat the United Kingdom as the top market for the brand this year.
"I can't build enough cars," said Taylor, a 45-year-old British native whose accent and history seem to fit the brand's identity.
On going Diesel in the US: Taylor said the division is trying to bring diesel engines to the U.S. market as soon as possible in an effort to improve the fuel economy of the Land Rover lineup,
And this was interesting: it's also thinking about offering an SUV smaller than its mid-size Freelander.


Poor bloke Imagine having to build that many cars by himself, what does everyone else do :)

Land Rover is going from strength to strength right now. The new Freelander will move things up a gear, whilst the proposed "Landie" could drive both profitability and volume to incredible levels. The question I have is, when re they going to make us a car? Something along the lines of the Rover Pathfinder project would be awesome!

StreetBoy
07-10-2005, 08:00
. The question I have is, when are they going to make us a car?
err NEVER

why would they?

DunRovin
07-10-2005, 12:27
err NEVER

why would they?

Perhaps a Subaru style vehicle along the lines a of a Legacy Outback would give them another direction in which to compete. Four wheel drive, high spec, solid as a rock, luxurious country vehicles. Perhaps like the Audi All Road? Maybe Volvo would do that, although the XC90 does in some way compete in the SUV market.

StreetBoy
07-10-2005, 13:49
Perhaps a Subaru style vehicle along the lines a of a Legacy Outback would give them another direction in which to compete. Four wheel drive, high spec, solid as a rock, luxurious country vehicles. Perhaps like the Audi All Road? Maybe Volvo would do that, although the XC90 does in some way compete in the SUV market.
No, would ruin LR's image. Volvo or one of Fords other brands would be better suited to something like that

MGROVERnut
07-10-2005, 15:06
No, would ruin LR's image. Volvo or one of Fords other brands would be better suited to something like that

I'd buy it now that Rover's gone. Besides if Porsche can make SUV's then why can Land Rover make a car like the Audi Allroad?

StreetBoy
07-10-2005, 15:31
I'd buy it now that Rover's gone. Besides if Porsche can make SUV's then why can Land Rover make a car like the Audi Allroad?
I see your point but now its in the Ford empire theres no need to diversify, other brands cover up all the niches already. Land Rover has an enviable reputation for off roaders theres no need to mess with it.

DunRovin
07-10-2005, 18:41
I see your point but now its in the Ford empire theres no need to diversify, other brands cover up all the niches already. Land Rover has an enviable reputation for off roaders theres no need to mess with it.

It's true that Jaguar and Volvo do 4wd estate cars, but Volvo also do the SUV, as do Ford in the USA. If the vehicle was well executed with correctly targeted marketing I can't see it doing any more damage to LR than a toy off-roader like the Freelander or the ropey reliability of the Disco (series 1,2,3 - now improving).

MGROVERnut
07-10-2005, 19:37
There is a another point. There is a huge question mark over the X type (which actually isn't selling too badly now) and Halewood has lots of unused capacity. Why not develop a new platform for a new X type and Land Rover "AllRoad" and share components? Obviously they would need to look completly different but a Land Rover "All Road" would sell and the X type would become much more profitable....

davidcalgary
08-10-2005, 14:51
Aren't L-R looking at building a 2-wheel drive vehicle that fits below Freelander in the market? That might end up as a `Pathfinder-type' vehicle. I'm not sure that a non 4x4 fits with L-R's image though.

StreetBoy
08-10-2005, 15:52
Aren't L-R looking at building a 2-wheel drive vehicle that fits below Freelander in the market? That might end up as a `Pathfinder-type' vehicle. I'm not sure that a non 4x4 fits with L-R's image though.
I believe they are doing this to shut the hippies up as they are on LR's back at the moment. Seems a bit daft as they wont buy them anyway. They should concentrate on the new freeloader and defender imo

RayCee
09-10-2005, 02:36
Halewood has lots of unused capacity.

That was to have been addressed by moving the Mondeo from Belgium but the workers sabotaged Transit production and Ford backed off. (They Brits could learn something from them about how to show displeasure).
Now the New Freelander will be going there from 2007 I believe so the capacity will be well used by then I would imagine.

MGROVERnut
09-10-2005, 11:40
Aren't L-R looking at building a 2-wheel drive vehicle that fits below Freelander in the market? That might end up as a `Pathfinder-type' vehicle. I'm not sure that a non 4x4 fits with L-R's image though.

No I think it will still be a 4x4, if it's built....

davidcalgary
09-10-2005, 15:04
No I think it will still be a 4x4, if it's built....
I hope so. A 2WD L-R just doesn't feel right!

scottG
19-10-2005, 09:17
http://www.freep.com/money/autonews/landrover6e_20051006.htm

In part: These are good, profitable times for the brand Ford purchased five years ago for just under $3 billion from BMW... In fact, Taylor maintains that Land Rover, which doesn't publicly share its financial results, is one of the success stories in the auto industry, turning from losses to "significant profits." U.S. sales ...are up 31.9% this year, defying the overall SUV market, which is down 7.9% during the same period. The performance was similar on a worldwide basis during the third quarter. And sales of Land Rover vehicles are growing so fast in the United States that the U.S. might unseat the United Kingdom as the top market for the brand this year.
"I can't build enough cars," said Taylor, a 45-year-old British native whose accent and history seem to fit the brand's identity.
On going Diesel in the US: Taylor said the division is trying to bring diesel engines to the U.S. market as soon as possible in an effort to improve the fuel economy of the Land Rover lineup,
And this was interesting: it's also thinking about offering an SUV smaller than its mid-size Freelander.


"Land Rover records £228m loss
13 Oct 2005
Trouble continues to plague Ford’s European luxury brands as Land Rover plunged deep into the red last year, recording a pre-tax loss of £228m. The losses come despite a £166m cash injection from the parent company. David Smith, finance director of Land Rover, told the paper the business had made a profit in the second quarter of this year but declined to predict whether it would do so for the full year. He added that Land Rover’s overall costs rose 13 per cent to £3.45bn, while turnover rose £147m, just under 5 per cent, to £3.29bn."

ummmm bugger!

S

xerif
19-10-2005, 15:50
I hope so. A 2WD L-R just doesn't feel right!

2WD LR! A daft suggestion...like BMW going FWD. Look at the comprises they've made on the One just to ensure it fits the image,

RayCee
19-10-2005, 16:28
"Land Rover records £228m loss 13 Oct 2005
Trouble continues to plague Ford’s European luxury brands as Land Rover plunged deep into the red last year, recording a pre-tax loss of £228m. The losses come despite a £166m cash injection from the parent company. David Smith, finance director of Land Rover, told the paper the business had made a profit in the second quarter of this year but declined to predict whether it would do so for the full year. He added that Land Rover’s overall costs rose 13 per cent to £3.45bn, while turnover rose £147m, just under 5 per cent, to £3.29bn."

Phrases such as 'Trouble continues to plague', 'plunged deep into the red', 'losses come despite a £166m cash injection'. Then a little side point:
'the business had made a profit in the second quarter of this year'. I guarantee the profit will be going up because sales are swinging to better profit models. That's why the second quarter made a sound profit. This was written by someone who just wanted a sensational article or was released by Ford to keep LR workers going after big wage demands, which after all the years of losses, Ford shouldn't have to pay out. I think you have been sucked in Scott. Ford deserve some profit after the fine job they have done turning it around. Something BMW couldn't do. I hope the workers aren't going to get greedy. Otherwise, they want your business in Slovakia Ford.

Bob S
19-10-2005, 17:55
Is this report out of date, or am I missing something? The one story is datelined Oct. 13 of this year, yet reports on Land Rover's losses of LAST YEAR. I suspect this is just the typical pessimistic media racking their brains for some sort of negativity in an overly positive situation. Not finding anything currently wrong at Land Rover, they must did through their archives and rehash year-old statistics as current news.

Sad. I bet even once MG is building 100,000+ cars per year with 1500 staff and raking in money hand over fist, the news media will go back and reprint ca. 1975 stories of BLMC's bankruptcy.

scottG
20-10-2005, 07:18
Phrases such as 'Trouble continues to plague', 'plunged deep into the red', 'losses come despite a £166m cash injection'. Then a little side point:
'the business had made a profit in the second quarter of this year'. I guarantee the profit will be going up because sales are swinging to better profit models. That's why the second quarter made a sound profit. This was written by someone who just wanted a sensational article or was released by Ford to keep LR workers going after big wage demands, which after all the years of losses, Ford shouldn't have to pay out. I think you have been sucked in Scott. Ford deserve some profit after the fine job they have done turning it around. Something BMW couldn't do. I hope the workers aren't going to get greedy. Otherwise, they want your business in Slovakia Ford.

Sucked it? Just reporting what I found - it was posted on motortrader.com and when I read it I remembered this thread on here. Just thought it was interesting.

TBH I like Land Rover's - I want them to be successful - my partner has a Disco 2 - but I also know that there are still problems with the product too.

I was at a meeting with a 3rd party warranty provider only 2 weeks ago - and they still state that for any Land Rover product they have to load the cost to the dealer 100% to cover LR breakdowns.

I wish them all the best - and I'm glad they have the resource of FMC on their side.

S

RayCee
20-10-2005, 09:07
Phrases such as 'Trouble continues to plague'.

What I meant Scott was this quote is inaccurate. Trouble HAS plagued them but it's going well NOW. The article clearly states ongoing trouble, which is then contradicted by the comment on the profit for this year. Whoever wrote this should go back to 'journalism school' to learn how to write an accurate article that doesn't contradict itself as this one does. Your comment at the end of the article quote gave me the impression you believed it, hence the 'sucked in' comment. I'm sure you want success for LR. The author of the article clearly doesn't, otherwise the tone would have been upbeat, to reflect LR's renaissance.

RayCee
20-10-2005, 23:39
I hope the workers aren't going to get greedy. Otherwise, they want your business in Slovakia Ford.

http://news.bbc.co.uk/1/hi/england/coventry_warwickshire/4362278.stm

Land Rover staff turn down offer
Workers at Land Rover have rejected a two-year pay deal.
The Transport and General Workers' Union said the new offer, which would have seen workers' pay increase by £30 a week, was rejected by 53% of voters. A union spokesman said it was disappointed with the result as it had been recommended by a joint negotiation committee of unions and employers.

Are these workers greedy or what? The union wanted it. The workers didn't. These workers at Solihull are a disgrace IMO. Send the work overseas. These men (and their children) deserve the dole or a service industry job.

PatrickT
21-10-2005, 02:25
Raycee - the interesting point in the media articles about LRs 2004 loss was that turnover has increased but is still at least 160 million less than their expenses.... In other words they have a net negative cashflow. Sooner or later the coffers run dry - just as they did at MG Rover.

The only way around this is to drastically reduce costs. the most obvious way to do this is to source components from cheaper places than the UK and to reduce Solihull staff levels dramatically. The unions aren't stupid - they can see that LR is still bleeding badly. The workers aren't so smart. Perhaps they need to have a look back to the start of this year and see what happened when MG Rover ran out of cash.

RayCee
21-10-2005, 03:52
Raycee - the interesting point in the media articles about LRs 2004 loss was that turnover has increased but is still at least 160 million less than their expenses.... In other words they have a net negative cashflow. Sooner or later the coffers run dry - just as they did at MG Rover.


But in 2005 it said there was a 2nd qtr profit. But certainly they are not out of the woods.

The only way around this is to drastically reduce costs. the most obvious way to do this is to source components from cheaper places than the UK and to reduce Solihull staff levels dramatically. The unions aren't stupid - they can see that LR is still bleeding badly.

Ford know that it would cost so much less to make LRs in Eastern Europe. The only thing holding them back is a sales backlash form those who expect LRs to be British built, or sentimntality. Anyone who has followed my threads will note I'm all for UK workers but this refusing 30 pound per week on their already inflated wage packets is sickening. If I was Ford, I would pull LR production out of the UK. It makes no economic sense to stay in the UK. They could make so much money manufacturing elsewhere. There is no point bargaining with people who have no interest in LR except to make a fat wage as the company struggles to make money. They don't deserve work and Ford deserves better.

The workers aren't so smart. Perhaps they need to have a look back to the start of this year and see what happened when MG Rover ran out of cash.

You are so kind in your description of them. But they won't beyond their nose until their jobs have gone and then they'll whinge about how the government should have bailed them out.