Tough times: Negotiations for a government loan contiue
BRITISH luxury carmaker Jaguar Land Rover's UK unit reported a loss for 2008 but will receive a guarantee for a bridging loan from the British government, the Financial Times said yesterday.
The report said the core UK operations of Jaguar Land Rover, which is owned by India's Tata Motors, swung to a net loss of £673.4m ($1.11bn last year from a net profit of £641.5m ($1.5bn) in 2007, according to accounts filed with Companies House last week.
News of the loss comes as the carmakers and Tata Motors strive to conclude talks with the British government over short-term financing.
However, the FT reported that the British government was prepared to offer Jaguar Land Rover a guarantee for a £175m ($288m) commercial bridging 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 the Jaguar Land Rover unit it bought in 2008 posted a loss after tax of £306m ($504m) for the 10 months of the fiscal year to March 2009 as the global recession crippled car sales, primarily luxury and sports utility vehicles.
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