Page last updated at 14:35 GMT, Friday, 26 June 2009 15:35 UK

Jobs warning at Jaguar Land Rover

Jaguar Land Rover
Jaguar Land Rover is continuing talks with the government over aid

More job cuts may be made at Jaguar Land Rover, after the carmaker reported a £280m 10-month loss, owner Tata Motors has warned.

Tata also said that further shutdowns were likely at Jaguar Land Rover's factories in Castle Bromwich, Coventry, Solihull and Halewood, Merseyside.

Jaguar Land Rover currently employs 14,500 people, having made 450 redundancies at the start of the year.

Sales of Jaguar and Land Rover cars fell 32% in the 10 months to 31 March.

The government has said that it is willing to help as it regards Jaguar Land Rover as a viable company with good long term prospects
Government spokesman

The number of vehicles sold fell to 167,000 from 246,000 a year earlier, as worldwide demand fell sharply due to the recession.

Tata said that while Jaguar Land Rover sales slumped "considerably" last year, one highlight had been "a very strong consumer response" to the Jaguar XF model.

The £280m loss was for the same period to 31 March, which was Jaguar Land Rover's first 10 months under the ownership of India's Tata.

Government support

Jaguar Land Rover said the firm was continuing talks with the UK government about the possibility of some form of financial assistance.

"The government has said that it is willing to help as it regards Jaguar Land Rover as a viable company with good long term prospects," said a spokesman for the Department for Business, Innovation and Skills.

"We recognise that trading conditions for the car industry are difficult at the moment.

"Talks are progressing with Jaguar Land Rover and Tata over terms and arrangements of both the short and long term financing."

Tata's own losses

Tata bought Jaguar Land Rover for £1.7bn in June 2008 from Ford.

The warning about possible further job cuts at Jaguar Land Rover came as Tata reported its own losses.

Tata made a net loss of $520m (£315m) in the year to 31 March, which includes the 10 month impact of Jaguar Land Rover.

It was the firm's first annual loss for eight years.



Print Sponsor


RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific