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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.

Bloodhound SSC makes its speed-ready debut in London

Bloodhound SSC, the 1,000-mph land speed record contender, broke cover this week in Canary Wharf, London, in the heart of the Docklands financial district. "This is the best of British engineering meets the best of British banking," quipped Philip Dunne, MP, minister of state for defense procurement, which has provided backing for the team in terms of Army and Royal Air Force personnel and equipment. The team announced that Bloodhound will do its first test runs in Newquay, Cornwall, next spring before traveling to Hakskeen Pan in northwest South Africa in the fall. There, on October 15, 2016, it will make its first attempt on the land speed record, which currently stands at 763.035 miles per hour. That speed was set by Thrust SSC in the Black Rock desert on October 15, 1997 by Bloodhound's driver, Andy Green. Nineteen years later to the day, Green will be shooting for a speed over 800 mph. Over 8,000 people will come to Canary Wharf to see this extraordinary jet- and rocket-powered car over the next couple of days. This is the first-ever viewing of the machine in assembled form. The right-hand side is fully dressed in desert spec, complete with forged aluminum wheels and aerodynamics. The left-hand side is in 'naked' Newquay test spec, with panels removed for easy access and the whole thing riding on rubber tires that can run on tarmac. First impressions are of a big yet muscular car simply crammed with engines, jets, and rockets. The most recognizable thing, apart from the seven fire extinguishers, is the Jaguar AJ133 5.0-liter V8, lifted from an F-Type, which will run the fuel pumps that deliver over 211 gallons of high-test peroxide over the rocket motor's 20-second burn time. The EJ200 Typhoon military jet engine occupies the top floor and provides nine tons of thrust, and underneath is the single Nammo rocket motor providing an additional four tons. "When we go for 1,000 mph, we'll need another two rocket motors," says Mark Chapman, Bloodhound's chief engineer. "That total additional eight tons of thrust is what we'll need to get from 800 to 1,000 mph." He explains that the rear of the car will have to be redesigned to accommodate the two additional rocket motors, and the suspension might have to be adapted with longitudinal rear spring units like the fronts. There are still unknowns in the project, such as the area of vacuum that will follow the car several meters behind.

U.S. issues new tariff threat, this time against British-built cars

WASHINGTON — Britain is the United States' closest ally but their long friendship may be sorely tested as the two countries try to forge a new trade agreement after Britain's exit from the European Union. U.S. Treasury Secretary Steven Mnuchin said on Saturday in London that he was optimistic that a bilateral deal with Britain could be reached as soon as this year. But Mnuchin gave up no ground after a second meeting with his UK counterpart, Sajid Javid. Javid has insisted that Britain will proceed with a unilateral digital services tax, despite a U.S. threat to levy retaliatory tariffs on British-made autos. Mnuchin told reporters after Saturday's meeting that such taxes would discriminate against big U.S. tech companies like Alphabet Inc's Google, Apple, Facebook and Amazon. The UK Treasury declined to comment on the private meeting. The divide highlights the challenges ahead as the Trump administration seeks a new bilateral agreement with Britain, part of a broader push to rebalance relations with nearly all its major trading partners. The stakes are high — British Prime Minister Boris Johnson has pegged the trade deal with United States as a way to ease the pain of breaking with Europe, Britain's largest trade partner. U.S. President Donald Trump, has promised a "massive" trade deal to support Brexit, the product of a populist movement similar to his "America First" agenda. The goodwill and special relationship the two countries have enjoyed for decades may not count for much, experts say. "Trump is not going to be doing Johnson any favors," said Amanda Sloat, a senior fellow with the Brookings Institution in Washington. "He's not going to give him a trade deal without major concessions." Even before the digital tax issue arose, the Trump administration threatened to tax foreign car imports, which could hit British-made Jaguar, Land Rover, Mini, and Honda Civic hatchback cars. Stiff U.S. trade demands include increased access for U.S. farm goods, concessions that will be difficult for Britain's entrenched natural food culture to swallow. The United States also wants Britain to change the way its National Health Service prices drugs and allow in more U.S. pharmaceuticals, which could prove politically unpopular for Johnson's government. Washington's demand that London block Chinese telecoms equipment maker Huawei Technologies Co Ltd for national security reasons could also cloud talks.