Jaguar Land Rover posts $1,11 billion annual loss
By Andrew C., 27 Aug, 2010. 0 Comments
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Combined Jaguar and Land Rover losses in the past year total to $1,11 billion, a stark contrast from the $1,05 billion profit in the same period last year. The "total recognized losses" at JLR - including actuarial and other losses related to their pension schemes - reached nearly $1.98 billion last year. A JLR spokesman stressed however, that the accounts relate to its UK operations only, and that the previous financial year's results had been boosted by a sharp rise in its Aston Martin shares, which have now been sold.
This loss report comes as JLR and owner, India's Tata Motors, seek to conclude talks with the British government for short-term financing. The government is supposedly only willing to offer JLR a guarantee for a $ 288 million commercial bridging loan, which is significantly less than the $ 825 million that Tata has been seeking. Another source of disagreement would be the loan terms.
Tata is asking for 12 months while the government prefers a 6-month term. The government, however, is believed to be more inclined to have representation on JLR's board in exchange for providing the loan guarantees. To cover losses since the financial crisis began, Tata has been pumping more than $1.65 billion into JLR. Tata purchased JLR from Ford for $2.3 billion last year, just as sales of large and luxury vehicles began to plummet. [via autocar]
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