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Jaguar Land Rover hands Tata the biggest loss in Indian corporate history

BENGALURU/NEW DELHI — Jaguar Land Rover's owner Tata Motors Ltd stunned markets by posting the biggest-ever quarterly loss in Indian corporate history of about $4 billion on slumping China sales, sending its shares crashing as much as 30 percent. Tata Motors also warned that the Jaguar Land Rover (JLR) unit, which brings in most of its revenue, would swing to an operating loss for the year versus an earlier projection it would break even, given weak sales at the luxury British carmaker. JLR's China retail sales were cut almost in half in the December quarter as overall demand in the world's biggest auto market contracted last year for the first time since the 1990s. The firm has also been buffeted by Brexit woes and weaker business for diesel cars that account for bulk of its sales in Europe. Tata Motors turned in a third-quarter loss of 269.93 billion rupees ($3.8 billion) on Thursday, more than half its current market capitalization of $6.1 billion, mostly due to a massive impairment at JLR. Analysts were expecting a profit. "We are now taking clear and decisive actions in JLR to step up its competitiveness, reduce costs and improve cash flows and make the business fit for the future," Chief Financial Officer PB Balaji told reporters on a conference call on Thursday. JLR has taken steps to address the slide in China sales by changing its strategy to focus on profits for dealers instead of sales and incentivising retail sales over wholesale, he said. "We are encouraged by continued demand for the refreshed Range Rover and Range Rover Sport," JLR Chief Commercial Officer Felix Brautigam said in a statement. "With deliveries of the new Evoque due to start later this quarter, we look forward to building momentum." But analysts expect JLR to struggle to generate profit with China's economy projected to slow further this year after growth eased to its weakest pace in almost three decades in 2018. JLR's overall retail sales in January plunged 11 percent. The dour numbers prompted Tata investors to make a beeline for the exits as markets opened on Friday, with shares of the company skidding to their lowest in nine years at one point. The stock was down about 20 percent by 0720 GMT near 150 rupees, on track for its sharpest drop since 2003. At least four brokerages cut their price target for Tata Motors shares after its quarterly loss. Analysts at Jefferies pegged the stock at 250 rupees, versus an earlier target of 300 rupees, citing weak performance at JLR.

Jaguar F-Type gets even more British with Design Edition

Short of maybe driving a Morgan while wearing tweed and smoking a pipe, automobiles don't come much more quintessentially British than a Jaguar. But now the F-Type is going to be even more so with the launch of the new British Design Edition. It's based on the six-cylinder F-Type S, but upgrades with a series of special touches to set it apart. Red, white, and blue are the dominant colors from which buyers will be able to choose both the exterior color and that of the interior contrast stitching. The leather interior comes in black, and those less patriotically inclined can spec the outside to match. The British Design Edition also features 20-inch wheels in dark gray satin finish, packing upgraded brakes with red calipers. The Design package comes standard with upgraded aero, as does the 12-speaker Meridian sound system. And naturally there are special insignia inside and out. Buyers will be able to choose between coupe or convertible and rear- or all-wheel drive, but either way motivation comes in the form of JLR's 3.0-liter supercharged V6, driving 380 horsepower and 339 pound-feet of torque through an eight-speed automatic transmission. Only 300 units will be coming to the United States, with prices starting at $92,100 (plus a $995 destination charge) – representing a substantial $14.8k premium over the $77,300 price of entry for an F-Type S Coupe. Spec one out with similar options and you'd be looking at $86,250, which makes the privilege (and resale value) of acquiring the limited edition a $5,850 proposition. Any way you cut it, though, the elbow patches cost extra.

Jaguar Land Rover says key models in short supply, some have six-month wait lists

Care for a bit more proof that the Jaguar Land Rover portfolio of vehicles is the best it's ever been? Well, the Indian-owned pair of brands saw a record year in 2013, while 2014 has seen a 14-percent increase in sales. The crazy thing is, though, is that figure could be even higher, provided the company had the production capacity.
JLR is running a six-month waiting list on two of its most popular models, the Range Rover Sport (above) and Range Rover. According to Mark White, the company's chief technologist for body engineering, the blame can be placed on the paint shop at the company's Solihull factory, in the UK.
"We will probably max out the paint shop before we max out the body shop. Putting the second body shop in has given us the flexibility to ebb and flow the different models that go through there and meet the capacity demands we've got," White told Automotive News. "However, you always hit a bottleneck somewhere. And the paint shop is probably going to be the next biggest obstacle."