Jaguar Land Rover reports huge loss
July 28, 2009 by David Twomey
British luxury carmaker Jaguar Land Rover has reported a US$1-billion loss for 2008 but will receive a guarantee for a bridging loan from the British government, the British business newspaper, Financial Times, has reported.
The report, quoted by Reuters Newsagency, said the core British operations of Jaguar Land Rover, which is owned by India’s Tata Motors, swung to a net loss of 673.4 million pounds (US$1.11-billion) last year.
This was a change from a net profit of 641.5 million pounds in 2007 under previous owner Ford Motor Company, according to accounts filed with Companies House, in London, last week.
News of the loss comes as the carmakers and Tata Motors strive to conclude talks with the British government over short-term financing.
However, the Financial Times, quoting a person briefed on the matter, reported that the British government was prepared to offer Jaguar Land Rover a guarantee for a 175 million pound commercial bridging loan.
The report said Tata was pushing for a 12-month term for the loan, while the government wanted six months and board representation.
Tata Motors last month said the Jaguar Land Rover unit it bought in 2008 posted a loss after tax of 306 million pounds for the 10 months of the fiscal year to March 2009 as the global recession crippled car sales, primarily luxury and sports utility vehicles.
Print it: 
No surprise. It isn’t really a very good time for JLR. Still, in the next three years they’ll most likely have a new X Type and the mini Range Rover will be out so there may be some light at the end of the tunnel. Besides, if the Tata Nano sells in the numbers they’re estimating, I’m sure there will be some spare cash to keep JLR alive.
Jaguar and Landrover will be made in India. No doubt IMO.
Salesman, If that happens I don’t think it’s going to be for a very long time. Considering that they are basically surviving on handouts from the British government, I think it will be very hard for Tata to stop production in the UK and take it to India. I’m sure there are many contracts stopping them.
I don’t think it will happen though and if it does, I don’t think UK production will stop. It will just be an addition.
Poor Jag, TATA really isn’t a very good parent is it? They don’t have the experience of owning and efficiently operating car companies like Ford and VW do. That stuff takes time.
How many billion Rupees will it take to sort this mess out?
Correction, my dear Captain, it’s TRILLION.
I think they should come out with some ideas on how to reduce the prices. Maybe then the sales might increase.
For someone losing STG673million a year, a STG175million bridging loan is small change. Qustion is – if Tata has bought over Jaguar, why is the British Govt bailing them out with tax payers’ money? To save jobs? Why not use the money to pay the employees retrenchment benefits cos the Jag ain’t gonna turn around in one year.
That’s sad. Jag’s are great, I hope they can still recover the loss.
LOL
Right on cue, why do you think FOMOCO where so desperate to dump it?
They are also dying with Volvo, trying to find a wood-duck to buy it urgently
What you going to do about the red-ink Ratan?Sell more Tetley teabags?