Report: Jaguar-Land Rover posts $1.1 billion loss for 2008


The result is all the more shocking considering Jaguar-Land Rover posted a £641.5 million ($1.05 billion) profit in 2007

The result is all the more shocking considering Jaguar-Land Rover posted a £641.5 million ($1.05 billion) profit in 2007

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Despite Jaguar unveiling stunning new models such as the new XF and sales of the Range Rover luxury SUV still going strong, the Jaguar-Land Rover duo were still unable to turn a profit for 2008, even coming from a positive start to the year. The lack of profits is being blamed on the global recession stunting growth in the sale of luxury cars, and now for the first time we get a look as to how hard the recession has actually hit the British automakers.

According to a report from the Financial Times, Jaguar-Land Rover lost £673.4 million ($1.1 billion) for the 2008 fiscal year, while for the same period in 2007 it conversely managed to make a profit of £641.5 million ($1.05 billion), resulting in a near 200% downward swing in profit levels.

In the meantime, Jaguar-Land Rover and its Indian owner Tata Motors have applied for a loan from the U.K. government, and should the talks between Jaguar-Land Rover and the government result in a short-term loan, then it will see a cash injection into the brand of around £175 million ($288 million). Reportedly, the government and Tata are in disagreement about the term of the loan, with Tata requesting a 12-month loan and the government insisting on a 6-month loan and a choice in at least some of the company's board members.

While Jaguar's fortunes appear to be flagging, massive expenditures spent on developing the two new XF and XJ models will have been spent throughout 2008, and with the two models finally set to hit dealerships Jaguar may yet see a turnaround in its bottom line in the next couple of years.

 
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