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The acquisition of Jaguar Land Rover (JLR) by Tata Motors Ltd. from Ford continues to hurt the Indian automaker as the two British brands recorded a combined net loss of $1.11 billion in 2008.
As a sign of the troubled economic times, in 2007 the two automakers managed a total net profit of roughly one billion dollars.
Tata has worked hard to cut costs across the board and has introduced several new models which it hopes will boost sales, especially now that the auto-sector (and the economy) seems poised for recovery. New models include the significantly revised 2010 Range Rover and Range Rover Sport as well as the LR4 (pictured above). And in the Jaguar division JLR recently lunched a new flagship XJ, which leaves behind the traditional Jaguar design for a more broad-based look that the automaker hopes will help it compete with higher-volume German rivals.
In order to keep operations running in the short term Tata is currently working out a loan agreement with the British government, the value of which is reportedly worth around $290 million. The money is all but guaranteed, however, the British government would like a short 6-month term to re-pay the loan, whereas Tata is asking for 12 months. The British government is also seeking a spot on Tata’s board, to ensure its money is being spent wisely.
[Source: Automotive News]