The steep downturn of the world's luxury automotive markets has taken a toll on Jaguar/Land Rover, and the company's bottom line has taken a huge hit as a result. Automotive News is citing a Financial Times report that says Tata Motors' British luxury marquees lost 673.4 million pounds ($1.11 billion U.S.) in 2008. That's a $2 billion swing from the 641.5 million pound ($1.05 billion) profit the British brands earned in 2007. Tata Motors said last month that Jaguar/Land Rover lost 306 million pounds ($504 million) for the fiscal year ending March 2009.
The Financial Times report comes as Tata Motors is working out a deal with the British government to provide short-term financing for the cash-strapped automaker. The report that says the U.K. government is willing to provide a 175 million pound ($288 million) commercial bridge loan to keep operations running. The reports says Tata Motors would like a 12-month loan, while the British government would like a six-month term, along with representation on the board.