Coronavirus fallout: Jaguar Land Rover warns of supply chain issue outside China

Travel, automotive and aviation companies or those with significant exposure to Chinese markets have faced pressure this year due to the coronavirus outbreak.
By : Bloomberg
| Updated on: 11 Feb 2020, 11:54 AM
FILE PHOTO: Jaguar Land Rover unveils the new Jaguar F-Type model during its world premiere in Munich, Germany, December 2, 2019. REUTERS/Michaela Rehle/File Photo (REUTERS)
FILE PHOTO: Jaguar Land Rover unveils the new Jaguar F-Type model during its world premiere in Munich, Germany, December 2, 2019. REUTERS/Michaela Rehle/File Photo (REUTERS)
FILE PHOTO: Jaguar Land Rover unveils the new Jaguar F-Type model during its world premiere in Munich, Germany, December 2, 2019. REUTERS/Michaela Rehle/File Photo (REUTERS)
FILE PHOTO: Jaguar Land Rover unveils the new Jaguar F-Type model during its world premiere in Munich, Germany, December 2, 2019. REUTERS/Michaela Rehle/File Photo

Jaguar Land Rover warned of potential disruption to its supply chains outside of China, two days after first conceding the coronavirus is likely to affect its fourth quarter performance.

The luxury carmaker wrote on Friday that it expects the outbreak to impact its fourth quarter results but that it’s too early to quantify. By Sunday it had updated its presentation to add that if disruption continues, supply chains outside China could also be impacted.

The quick revision show how companies are scrambling to respond to both the virus and the growing number of preventative measures put in place in Asia and beyond to halt its spread.

Similar Cars

Find More Cars
Land Rover Range Rover Evoque (HT Auto photo)
Land Rover Range Rover Evoque
1998 cc | Diesel | Automatic (Torque Converter) | 14.71 kmpl
₹64.12 - 66.6 Lakhs**Ex-showroom price
Land Rover Range Rover Velar (HT Auto photo)
Land Rover Range Rover Velar
1997 cc | Petrol | Automatic (Torque Converter) | 13.16 kmpl
₹79.87 - 80.71 Lakhs**Ex-showroom price
Land Rover Range Rover Sport (HT Auto photo)
Land Rover Range Rover Sport
1997 cc | Petrol | Automatic (Torque Converter) | 9.26 kmpl
₹91.27 - 2.19 Lakhs**Ex-showroom price
Land Rover Range Rover (HT Auto photo)
Land Rover Range Rover
2996 cc | Petrol | Automatic (Torque Converter) | 9.43 kmpl
₹2.11 - 4.38 Cr**Ex-showroom price
Tata Tiago (HT Auto photo)
Tata Tiago
1199 cc | Petrol | Manual | 19.8 kmpl
₹4.7 - 7.05 Lakhs**Ex-showroom price
Tata Tiagoev (HT Auto photo)
UPCOMING
Tata Tiagoev
 
₹5 - 7 Lakhs* *Expected Price

Parent company Tata Motors Ltd. extended a shutdown of its unit Jaguar Land Rover’s plant at Changshu in China on Friday due to the outbreak. A spokeswoman for Jaguar did not immediately respond to a request for comment.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

“It feels a lot like the market is in ‘wait and see’ mode. Any issuer with a hint of Chinese exposure is being asked about coronavirus on earnings calls," said Steven Hunter, CEO and founder of high-yield analytics firm 9Fin Ltd. “Management responses have all been pretty similar - there will be an impact, but no one knows how material it will be."

So far the worries over the cornoavirus have had little impact on Jaguar’s sterling, euro and U.S dollar denominated bonds, which are trading near a year-long high. They were largely unchanged on Monday morning, according to CBBT data, after initially suffering some small losses at the end of January.

Travel, automotive and aviation companies or those with significant exposure to Chinese markets have faced pressure this year due to the outbreak. Bonds from shipping firm CMA CGM, travel retailer Dufry, hotel chain Accor and air cargo handler WFS have all suffered in recent weeks.

Still, the high-yield market more generally has withstood the growing concern with the Markit iTraxx Crossover Index, a key measure of risk for the debt of Europe’s most fragile companies still hovering at near all time lows.

“So far in 2020 we’ve had Iran firing missiles at the US, Brexit and now a global pandemic," Hunter said. “A few years ago these kind of events would have closed the primary market for weeks if not months, now not only do they get shrugged off but we hit record issuance levels in January."

First Published Date: 11 Feb 2020, 11:54 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city