How can Land Rover and Jaguar be posting losses?

Apparently Land Rover and Jaguar are showing a6 billion pounds loss this year. How can this be, there are thousands of new Land Rovers on the road and the new Jag looks nice and should sell well?|||econmics 101 spending more then you are making.





yes they are good products - I see a lot of them in show rooms no one can afford, or are unwilling to pay for. Plus the overhead of corporations, advertisments, shipping, handling, and production. margins need to exceed costs.|||I can appreciate that Jaguar are making huge losses because of its poor product range but questions must be asked about Land Rover whose product range is very popular and extremely expensive.|||They aren't





Its the parent company Ford who are making the 拢6 billion losses, mainly because the U.S. car market is in the same situation the U.K. car market was in the 70's.





The price of fuel (the price of petrol has risen from under a dollar a gallon to 3 dollars a gallon in the past few years) has turned U.S. consumers away from gas guzzlers, and better quality, smaller and cheaper imported cars are flying out of the dealerships. Ford and GM just can't compete, and are having to sell of the crown jewels (Jaguar and Land Rover) to fund reconstruction of the Business.|||There are some sensible answers already.





One additional point is that it's possible to move losses between companies in a group.





Take the X type (no one else has...) - it uses the Mondeo floor pan. How much do you cross charge? The price of the materials? The price of the labour + materials, or do you try and give Jaguar some Ford losses by making a case to charge the for the development as well.





There are loads of common components throughout the ranges and this sort of thing will go on. It'll be designed to ensure the group of companies pay as little tax as possible.|||Because we live in a self hate nation who buys foreign rubish insted of our own! Look at our police force running around in Volvos when the equivilant Jag is far supirior and those crap Merc 4x4s that couldnt touch a Land Rover off road! sad but we only have ourselvs to blame!|||They sell a lot of cars but the vehicles they sell are also expensive to build.the cost of designing a new vehicle is around 250million each, with the concerns of global warming these bigger vehicles also cost more in tax to build|||They are just 'Posh' Fords. Until a 'decent' firm take them over, they will continue to trade at a loss.|||ford owns them both and ford is losing badly in every thing|||The X type has not been a sales successes as jaguar thought the rest of the range is becoming dated now L/R is trading successfully but seem about to loose a large contract to the British Army.