Tata Loses $67 Million in Most Recent Fiscal Quarter

Posted by Sam Abuelsamid 0 comments

2010-xj-actf34-jaguar-fe-555-3.jpg

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 income 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)

Inside Line First Look: 2010 Jaguar XJ

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