Recently, there are two important news surrounding Jaguar Land Rover.
On January 28, Jaguar Land Rover China and Chery Jaguar Land Rover announced that *** would donate 8 million yuan to support epidemic prevention and control in Hubei.
On January 31, Jaguar Land Rover announced its financial report for the third quarter of the 2019/20 fiscal year (October-December 2019), achieving both revenue and profit growth.
One takes place in China, one involves all parts of the world; one reflects Jaguar Land Rover’s social responsibility as a company, and the other highlights Jaguar Land Rover’s achievements in the past quarter.
The two seem to have no connection, but in fact there is a core common point in the news itself: money. Yes, it’s money that everyone loves. The public's demand for these two pieces of news is consistent. The former wants to know how much Jaguar Land Rover donated? The latter wanted to know whether Jaguar Land Rover made money or lost money.
In this epidemic donation, Jaguar Land Rover China and Chery Jaguar Land Rover *** both donated 8 million yuan, reflecting their corporate social responsibility. As for the recently released single-quarter financial report, Jaguar Land Rover wants to convey not only those few data, but also more in-depth internal communication points.
What does this deep level refer to? You taste it, you taste it carefully.
Reforms have achieved remarkable results
From the data released in the financial report, we can see that the reform measures launched by Jaguar Land Rover in 2019 have initially achieved results. This company staged a "desperate counterattack" in 2019.
The financial report for the third quarter of fiscal year 2019/20 (October-December 2019) shows that following the second quarter financial report, Jaguar Land Rover once again achieved double growth in revenue and profit. In this financial quarter, Jaguar Land Rover's global revenue was 6.4 billion pounds, a year-on-year increase of 2.8%, pre-tax profit reached 318 million pounds, and the EBIT margin was 3.3%. Encouraged by two consecutive financial quarters, Jaguar Land Rover expects to achieve a profit level of 3% for the full fiscal year.
Prof Sir Ralf Speth, Global CEO of Jaguar Land Rover, said: “Thanks to the continuous changes in business operations, Jaguar Land Rover continues to achieve both revenue and profit growth. Although the automobile The market as a whole still faces many challenges, but our excellent market performance in China and the outstanding performance of the new generation Land Rover Range Rover Evoque give us confidence. At the same time, we continue to improve our financial situation and achieve results through cost reduction and efficiency improvement actions. The achievements will be a solid guarantee for Jaguar Land Rover to introduce more exciting products and technologies to the market. Progress and achievements in various fields will give Jaguar Land Rover a more solid foundation to build a future of 'zero emissions, zero accidents and zero congestion'. Development Vision. ”
Thanks to Jaguar Land Rover’s implementation of cost reduction and efficiency improvement measures in 2019, it achieved both revenue and profit growth. As of the third fiscal quarter, the "Project Charge" project has achieved a global cost and cash flow improvement target of 2.9 billion pounds, exceeding the original plan of 2.5 billion pounds. Encouraged by this measure, Jaguar Land Rover said it will work hard to achieve a cost and cash flow improvement target of 1.1 billion pounds ("Project Charge+") in the next phase, with a view to achieving a full financial year of 4 billion pounds by the end of March 2020. overall goal.
Driven by a series of reform measures and a concerted effort, Jaguar Land Rover's book figures in the third fiscal quarter are also remarkable. At the end of this financial quarter, Jaguar Land Rover's cash flow was a net outflow of 144 million pounds, an improvement of 217 million pounds compared with the same period of the previous fiscal year, and sufficient cash flow, including 3.9 billion pounds of cash and 1.9 billion pounds of undrawn credit lines, totaling 5.8 billion pounds. These real money are the foundation for Jaguar Land Rover to make great achievements in the field of innovation.
For automobile companies, improving performance means that the core product of automobiles is widely favored in the consumer market. In the third fiscal quarter, global sales of the new Range Rover Evoque increased by 30%, and the new Land Rover Discovery Sport increased by 9.2%. Retail sales of Range Rover Sport and Land Rover Discovery also achieved year-on-year growth.
In contrast, Jaguar Land Rover said that the improvement in third-quarter performance was mainly due to the expansion of the Chinese market, the enhancement of product structure, the reduction of operating costs (including project expenses) and favorable foreign exchange levels.
China is Jaguar Land Rover's most important single market, and the Chinese market plays a decisive role in Jaguar Land Rover's global scale. After in-depth adjustments, the large and strong characteristics of the Chinese market have been revealed one by one. In December 2019, Jaguar Land Rover's single-month sales in China increased by 26.3%, achieving double-digit growth for six consecutive months, with a growth rate of 24%, including an increase of 24.3% in the third fiscal quarter.
What is more important than sales is that Jaguar Land Rover’s system capabilities have become stronger after this round of baptism. This is the basic quality that Jaguar Land Rover must hone in order to seek long-term development in China.
The key to continued strength
In 2018, Jaguar Land Rover encountered a trough in China due to the general environment. At this time, many car companies in the Chinese auto market have adopted price tags, trying to exchange price for volume.
However, Jaguar Land Rover did not participate in this price war and did not take the road of selling cars at discounts. It proposed that "we will never exchange blood for volume growth!"
Because Jaguar Land Rover knows very well that they Every step taken now, whether right or wrong, will affect the brand's development in China in the next 15 to 20 years. Jaguar Land Rover also knows that the Chinese auto market is going through a cyclical adjustment phase and will soon usher in a rebound period. During this period, what Jaguar Land Rover needs to do is to identify the shortcomings left behind by rapid growth and then prescribe the right medicine. Continuously strengthen your own abilities and practice your inner strength.
The leaders headed by Pan Qing conveyed two important psychological supports to the team: faith and confidence. Have faith that the current difficulties are only temporary. We also need to have confidence that the favorable market trends are just around the corner.
People are the foundation of everything, especially when facing difficulties, stabilizing people's hearts is Jaguar Land Rover's top priority. This also includes the most important relationship with dealers.
In Pan Qing’s schedule in 2019, visiting investors and dealers is the first priority. Jaguar Land Rover conducts up to four road shows throughout the year, and each requires huge consumption of manpower, material resources, and financial resources. But Pan Qing admitted that it was worth it. During the road show, Pan Qing formulated detailed business strategies for dealers and brought them Jaguar Land Rover's pragmatic business policies from the dealer level.
For example, Jaguar Land Rover and dealer *** jointly developed a three-step strategy of "stabilizing the situation, restoring confidence, and gradually improving", which boosted dealer morale. Do not blindly set sales targets, simplify business policies and procedures, and provide dealers with a lot of conveniences to enhance dealers' confidence.
In the first half of 2019, Jaguar Land Rover will call the reform in five major aspects involving dealer profitability, brand building, product strength improvement, team management, and sales services the system reform 1.0 stage. . Such adjustments paid off in the second half of the year. Not only did the sales performance increase for six consecutive years, but most importantly, the average profit target for the entire dealer network was achieved, and the inventory depth dropped from 2.2 to 1.5. These figures illustrate that the reform measures carried out by Jaguar Land Rover in China are effective.
At the same time, the system reform phase 2.0 and phase 1.0 launched in the second half of the year achieved a perfect transition. Jaguar Land Rover continued to evolve its capabilities, systems and confidence in the second half of last year.
In the future, Jaguar Land Rover will continue to cooperate closely with dealers. There is a lot of room for improvement for dealers to operate at the highest level of their capabilities. This is also the potential for Jaguar Land Rover to continue to grow in the future.
In this regard, Pan Qing said: "The continuous building of system strength in China has brought more confidence and energy to Jaguar Land Rover's upward development. The turn of 2019 and 2020 will not only provide the opportunity for Jaguar Land Rover to enter China The first decade of development has come to an end, and it has also opened a new starting point for another new decade. We must strive to realize the simultaneous development of China’s market energy and Jaguar Land Rover’s global layout.”
Cheyun Summary:
If you regard 2018 as Jaguar Land Rover's darkest moment, think of 2019 as a year of accumulation and progress. Then, Jaguar Land Rover in 2020 will usher in a year of development. After in-depth adjustments in 2019, Jaguar Land Rover's overall system capabilities have taken on a completely new look. Data shows that Jaguar Land Rover's positive word-of-mouth increased by 6% in 2019.
In addition, Jaguar Land Rover has attached great importance to building a localized team in recent years. Today, the operating mechanism of Jaguar Land Rover's R&D team, production team, and purchasing team in China has become increasingly mature. Together with the British team, they form the future cornerstone of Jaguar Land Rover.
Looking to the future, Jaguar Land Rover is based on the long-term with its innovation strategy. We continue to invest heavily in new areas such as autonomous driving, electrification, intelligent connectivity, and shared travel to obtain new technologies for the future. In the field of electrification, Jaguar Land Rover has reached the forefront of the global luxury car camp. This year, the pure electric Jaguar XJ will join the I-Pace, and the planned MLA platform will also launch more electrification options in the future. .
A Jaguar Land Rover with technology and talents, why worry about having no future?
This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.