Jaguar Land Rover Report Loss for 2008
By Brendan Moore
Jaguar Land Rover’s core unit, the British operations of the company, has reported a loss in 2008.
The Financial Times reports that Tata Motors of India, Jaguar Land Rover’s owner, has been guaranteed a bridge loan from the British government. Government officials and Tata executives have been discussing short-term financing options for the struggling UK business unit.
The Financial Times article stated that the government was offering Tata a 175 million pound commercial bridge loan with a six-month term. The terms of the offered loan also call for the British government to be given a seat on the board of the company.
Tata is holding out for a twelve-month term, and no board representation.
Jaguar Land Rover dived to a 673.4 million pounds ($1.11 billion USD) loss for 2008, falling from a 2007 profit of 641.5 million pounds in 2007.
2009 figures look equally bleak for the company, with a posted 306 million pound loss so far in fiscal 2009. The global recession has hit Jaguar Land Rover particularly hard among luxury makes.
In other news, Tata Motors Ltd, the Indian truck maker and parent company of Jaguar Land Rover, posted an unexpected profit for last quarter through an accounting change. The results do not include Jaguar Land Rover’s financial results.
COPYRIGHT Autosavant – All Rights Reserved