Jobs warning as Jaguar Land Rover loses £280m
Author: Robin Brown
Published: 29 June 2009
Jaguar Land Rover has reported a loss of £280m from May 2008 to March 2009, prompting owners Tata to warn that more cuts, jobs losses and downtime may result.
Tata bought JLR from Ford for £1.7bn in June 2008, but has struggled to turn the manufacturer around despite reportedly investing £1bn and strong sales for the new XF saloon.
Tata Vice Chairman Ravi Kant warned that more job losses and shutdowns could result. The loss can be partly attributed to the the effects of the credit crunch, with sales down 32 per cent over the ten months since Tata acquired JLR.
Tata is attempting to negotiate a loan of around £1bn from the UK government, which is notionally to be used to 'green' the manufacturer, though Tata has said that the money will be used to shore up ongoing cash flow.
The government is thought to be sceptical of Tata's lack of funds, but with over 14,000 UK workers, most of whom are based in Labour heartland of the West Midlands and Merseyside, the government will not want significant job losses.
The government is also said to regret the closure of MG Rover in 2005, as former employees have struggled to find skilled work.
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