• Jun 26th 2009 at 3:57PM
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2010 Land Rover LR4 – Click above for high-res image gallery

India's Tata Motors has reported a net loss of $520 million (25.05 billion rupees) for the fiscal year ending in March of 2009. Over the same period one year earlier, Tata managed to earn 21.68 billion rupees in profit. What gives? Naturally, the global economic meltdown didn't do the automaker any favors, but the main problem can be sourced back to the poor performance of Jaguar and Land Rover, which the Indian automaker purchased from Ford last year with the help of a $3 billion bridge loan.

The fact that Jaguar Land Rover accounted for $504 million of that $520 million total loss means that more job cuts and plant shutdowns are in store for the ailing British duo. Says Tata Vice Chairman Ravi Kant:
We have sent people on sabbatical, gone for cheaper low-cost country sourcing and tight control in cash flows, and are assisting JLR (Jaguar Land Rover) for a major belt tightening.
Earlier this month, it was reported that Tata was in search of some £1 billion ($1.5B) in cash and underwriting help to pump into the JLR operations.

[Source: Reuters]

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    • 1 Second Ago
      • 6 Years Ago
      I should also add that Jaguar and Land Rover will continue to enter new emerging markets such as India - I think next month. Also Land Rover is rumored to be one of the top picks to supply the Indian military with possibly up to 50,000 military spec Land Rover Defenders.
        • 6 Years Ago
        But I should say, as you all probably know, that future success will also depend on the state of the global economy. There are also some great products from other car makers that have been cut due to this recession. Hopefully things will improve soon.
      • 6 Years Ago
      @Azure: Agreed. AFAIK no owner has managed to make these brand's profitable in well over a decade. It may just be time to put them out of their misery.
        • 6 Years Ago
        Land Rover only made money after Ford gave them Jaguar engines. If LR had to develop engines on their own, they would have lost money again.
        • 6 Years Ago
        Land Rover made Ford between 500 million and one billion dollars, hard to get an exact number since Ford never broke out numbers for individual PAG units and the currency conversion screws things up some too, in profit the last year Ford owned them.

        It was widely reported in the British press and was even a feature story on Top Gear's website a year and a half ago.

      • 6 Years Ago
      Is anyone else wondering how these two brands keep hanging on? When was the last time either brand (as a brand, not one model alone) was very successful?
      • 6 Years Ago
      When did I ever say I worked for Rover?

      I sold Land Rovers for several years and still do to previous customer although I rarely take new business for Land Rover.

      The meeting was for Land Rover retailer personal to go over how the JD Power survey could be improved. Educating customers on features that were potentially confusing on the vehicles was just one part of it.

      Engineers and designers from Rover also went over how they were redesigning controls and features to make them easier to use and understand.

      I never had a problem with any of the features on the Rovers but then I lived and breathed the damn things and am a techie. I could understand how some features could be confusing to customers especially customers who don't use a particular feature that often.

      As to the head gasket problems. There were numerous changes to make the leaks less likely and for the most part they worked. the last generation rover V8s. I still saw it happen but it was much less frequent. Those engines are out of production for factory vehicles now and have been for almost six years.

      As to other quality manufacturers ignoring quality problems. Well lets see you got Toyota sludge problems and those are way more prevalent on a much wider array of engines then the Rover V8 head gaskets. Toyota blamed it on customers for years and did many things to try and get out of warranty repairs.

      Name a brand I can pick a similar story. I have been in this industry a long time on both the sales and service side. I have seen a lot.

      • 6 Years Ago
      Jaguar and Land Rover sales are hurting just like everyone else is. However, they both have some cool new products in the pipeline just around the corner - Jaguar with the new XJ in July and Land Rover just added night shifts to increase production for their 2010 line of newer model Range Rover, Range Rover Sport and new LR4. SEE LINK: http://www.birminghampost.net/news/jaguar-land-rover-campaign/jaguar-land-rover-news/2009/06/05/confidence-boost-as-night-shifts-return-to-land-rover-in-solihull-65233-23791671/

      Also, Land Rover has their new Range Rover LRX in the works and if Jaguar follows through with a new small sports car, convertible XF and Sport Wagon XF as well as a four-door XK then I think profits will be huge for Jaguar and Land Rover.

      Additionally, Jaguar has already hinted that the all-new Supercharged 5.0L petrol V8 will eventually deliver 600hp! I'd rather have a 600hp V8 then an overwieght 600hp V10 Bimmer or Audi.

      British_Rover you are right. I think it was in 2007 that Land Rover made $1 Billion in profit. However, Jaguar was still hurting at that time.
      • 6 Years Ago
      5. CS-series Alternators
      The 1986 model year brought a new type of alternator to GM, the CS-series, in the form of the CS130 and CS144. While powerful, these alternators had a few... problems. Chief among which were a defective casing , a tendency to overheat, and a marked affinity for bursting into flame! While these problems were later rectified (no pun intended,) by then thousands of cars had gone up in flames when their CS-130 committed suicide. Whose owners then had to walk home.
      • 6 Years Ago
      Imagine going off-road in your Land Rover and having it breakdown in the middle of nowhere.
        • 6 Years Ago
        Not likely. Although, you should never go off-roading alone anyway. That's a general rule. Imagine get stuck off-road in your other brand of off-roader. I'd prefer the Land Rover for its off-road capabilities.
      • 6 Years Ago
      Good products could save them, but the new Jaguar sedan and Land Rover products are not attractive.

      It's too bad, but then again someone might revive the brands in a few decades, who knows.
        • 6 Years Ago
        Whatever Nick, the Jag XF and especially the XK are very attractive. Range Rovers have always been gorgeous inside and out too, and traditional Land Rover's have always had rugged good looks. People were all over the new LR4 (budget Range Rover with a proper third row of seats and new 5.0L V8) at the New York Auto Show. That is why Land Rover is increasing production for their 2010 models. New model Land Rover forums are all abuzz with enthusiasts that want to trade up to the 2010 models.
        I would also love to see Jaguar offer the XFR sport body package in the standard XF too. I think almost everyone is excited to see what the new XJ looks like.
      • 6 Years Ago
      The problem for both is
      1 Reliability
      2 Personality (jaguar)
      3 Engine.

      They both have a reliability problem. The worst, is that their warranty is full of wholes that the owners ends up footing the bills even if it's cover by the warranty. Why so? Well in the case LR, all the dealerships are own by LR. So, they will fight any problem that arise and blame the owner so they won't reward the warranty.
      In the case of Jaguar, They Seem to lost there Identity every since they were sold to Ford. They started to look and feel like a regular American car with the premium price of a European.
      For the LR, There engines is just crap! When was the last time you heard of an Engine with a V8 and on 182 Horsepower? Worst, Their EPA is @ 13/19? that combination = Gas guzzler, underpower, and expensive part for a big engine.

      In the End, you can buy these cars at a 1/4 of their price within 3 years. Just no Value at all.

      You can summarize everything above in 3 word: Piece of Junks.
        • 6 Years Ago
        Whatever Sebastien. Jag frequently tops JD Power long term reliability surveys. Land Rover continues to improve.

        "For the LR, There engines is just crap! When was the last time you heard of an Engine with a V8 and on 182 Horsepower?"

        What the HECK! Sebastien, Land Rover just launched a new supercharged 5.0L petrol V8 with 510hp. What are you talking about? And Jag/Land Rover's new TDV6 has mucho torque. Same with the TDV8.
      • 6 Years Ago
      (I'm having to break these up because for some reason the Autoblog system won't let me post it all - it keeps telling me it's sending an email then the email never shows up).

      3. The “module-in-cap” GM HEI distributors/ignition systems.
      Getting rid of the crappy points-type ignition systems was a good idea, and HEI wasn’t a bad way to go about it. However, GM then decided to stick this sensitive piece of equipment into what is almost certainly the most electrically noisy part of the car – inside the distributor under the rotor. Early modules failed at a rate unheard of until GM started installing what they’d previously thought was unneeded shielding against EMI/RFI. And noise suppressing capacitors. And then a steel shield.

      Then they went and stuck the thing at the back of the engine in nearly the hottest part of the engine bay. Yeah, that module’s going to last a long time back there! Oh, wait.... Yup, walking home again.
      • 6 Years Ago
      a loss of 25.05 billion rupees?

      you are going to need to spend a LOT of time swording the bushes to get that many. it will take awhile.
      • 6 Years Ago
      Those are the top five of a long list of GM FAIL in the 70s and 80s. I could go on and on about the defective GM/Delphi TBI injectors (what revision are they on now, number 23?), the MAP sensors that went out like cheap Chinese firecrackers, the in-car VDTs and ICE that failed, the ABS systems that didn’t work, the automatic lights that didn’t work, the automatic climate controls that didn’t work, the digital dashboards that didn’t work....

      Strangely, Lucas never brought out any products quite as bad as the above... Imagine that. Nobody’s pretending that Lucas was the greatest company in the world or that their products were flawless, certainly; they had their share of screwups and oopsies as well. Most of Lucas’ problems weren’t in design, they were in build quality or lack thereof, whereas GM combined bad build quality with terrible design and cheeseparing design specs.

      Even more ironically, many of the much derided Lucas parts are actually GM parts with a new sticker or label on them. A couple of examples: The 78-87 Jaguar’s have an ignition amplifier/control module that is a steel box with wires coming out of it and a prominent Lucas label on the outside. If you open the box, you will find a four pin GM HEI module and a couple of capacitors. Same thing with those cars’ window lift motors - they’re GM units from a Caprice, made in Michigan, with a Lucas sticker slapped on them.

      I would sooner trust a Lucas car than a 1976 Eldorado. Or an 82 Vette. Or an 86 GM anything. At least the Lucas cars usually make it home, the GM ones will leave you by the side of the road. I can drive without a speedometer or tachometer or lights. I can’t drive without an ignition system.

      In my next post, I shall cover why most people stuffing Chevy V8s into Jaguars are mouthbreathing neanderthals who shouldn’t be let loose anywhere near a toolbox, let alone a car.
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