Jaguar Land Rover reported a loss for 2008 in the U.K. but will receive a guarantee for a bridge loan from the British government, the Financial Times reported on Sunday.
The report said the core British operations of Jaguar Land Rover, which India’s Tata Motors bought from Ford last year, suffered a net loss of 673.4 million pounds last year from a net profit of 641.5 million pounds in 2007, according to accounts filed to the British financial authorities last week.
News of the loss comes as the carmaker and Tata strive to conclude talks with the British government over short-term financing.
The Financial Times reported that the British government was prepared to offer Jaguar Land Rover a guarantee for a 175 million pound commercial bridge loan, citing a person briefed on the talks.
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 Jaguar Land Rover posted a loss after tax of 306 million pounds for the 10 months of the fiscal year to March 2009 as the global recession hit sales of luxury cars and SUVs particularly hard.
Source: Automotive News