Ford never could figure out how to make money on Jaguar and Land Rover, and now Tata Motors is struggling with the very same problem, albeit in a much tougher economy. The Wall Street Journal reports that the company posted a net loss of $67 million (3.29 billion rupees) for the fiscal quarter ending June 30. In the same quarter last year, Tata recorded a net profit of $147 million (7.2 billion rupees).
With the addition of the Jaguar/Land Rover model lines, Tata's net sales were actually up 13 percent year over year, says the WSJ -- yes, even though Jaguar-Land Rover unit sales were way down in the U.S. and Europe. But this wasn't enough to offset the added expense of owning these two brands.
So now there's just a little more on the line with the make-or-break launch of the redesigned 2010 Jaguar XJ, which goes into production this fall.
Wall Street Journal (sub.req)
brn says:
07:14 AM, 08/31/09
Tata as a whole lost $67 million? When you consider what a massive company they are, that's not much to talk about.
bankerdanny says:
08:20 AM, 08/31/09
Given the huge 'break' with tradition that the new XJ makes, I am predicting that it will do nothing to help Tata's bottom line.
tryan says:
08:23 AM, 08/31/09
+1 for BRN...
$67 Million loss? I think I hear GM crying in the background...
wrinklebump says:
10:13 AM, 08/31/09
For anyone that wants to read the WSJ article, you can get behind the pay wall by doing a news.google.com search for the headline.
estreka says:
10:20 AM, 08/31/09
$67M is little more than an Xmas bonus. Hardly worth note. If anything, it's a good thing.
I will say, though, that Tata works with much tighter margins than American companies do (except Detroit, anyway).
stuartw says:
04:59 AM, 09/11/09
Don't believe what you hear about Jaguar Quality and Service.
The Problem With Jaguar is Quality abd Service
I have less than 11,000 miles on my 2007 XK Convertible and I am on my 3rd battery and have had dozens of jump starts. Jaguar cannot fix the problem. The car is sitting in my garage dead again. And Roadside Assistance....what a joke. Today I got 9 automated calls between 5 am and 6:30 am. Everything about this company sucks. If you dont believe me call the service manager at White Plains Jaguar, Leonard at 914-949-8618; or call the Jaguar Corp rep, Siohban at 1-800-452-4827 x-2943.