Recently the company stopped issuing monthly sales reports on the two divisions. Now comes word that Tata is admitting that Jaguar and Land Rover experienced a loss of $383 million between January and June of this year. The Indian automaker says the loss will have an effect on its bottom line.
It gets better (i.e., worse). Tata reports that its supply and transmission agreements with Ford and other companies for component parts and services could also adversely affect the operations and financial condition of Jaguar and Land Rover. These agreements include long term sharing of powertrain technology, engine supplies, and other “transitional agreements” like wholesale credit support to dealers. Moreover, future pension expenses could adversely affect both brands' employee pension plan.
Our take? For you football fans, think of the rookie running back who has to sustain a big hit during a tackle and the tackler looks down at him as he winces in pain on the ground and says, “Hey Rookie, welcome to the NFL.” “Hey, Tata, welcome to the NFL.”