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Jaguar Land Rover Sales Stabilizing

land_rover_discovery_4_automobilesdeluxe

  • Jaguar-Land Rover net loss declines to “only” £60 million ($99 million)
  • Q2 Announcement comes on the heels of £175 million ($289 million) loan from India
  • Group sales rise 23%, Tata records tidy profit

By Gunnar Heinrich

NOT entirely certain what to make of this fiscal info from Tata’s Jaguar Land Rover group.

Jaguar Land Rover Group, jointly declared that sales rose 23% in this latest quarter. The BBC reports that stabilizing losses are due to action seen from the Land Rover division.

Could it be that the new Discovery’s launch is pulling the rest of the group out of the fiscal bog?

Possibly, though, last month’s news was grim across Tata’s board which suggests some media spin at play. Tata Motors lost money last year when the Indian car maker bought the two luxury marques from Ford.

That purchase (which Tata asked the UK government to help finance)  started a flow of red ink for Tata; it’s newly acquisitioned Jaguar Land Rover have recorded losses clear through 2009.

Last month, Jaguar Land Rover applied for and received a £175 million loan from the Indian government following Tata turning down further British aid. Reportedly, this brings the total tally of private and sovereign loans to £500 million ($825 million) for Jaguar Land Rover.

Tata’s now recorded an on-paper profit of £2.8 million ($4.7 million) with the latest announcement. Can we directly corelate this Tata profit to an increase in Jag and Landie sales?

Hard to tell with this info coming on the heels of financed capital and within precious few news cycles since October’s loan.

We’ll have a clearer pictures by the second quarter of 2010 when the loans effects are known and the new XJ sedans come to market.

November 30, 2009 | Gunnar | Comments 2
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