Jaguar Land Rover Books $371 Million in Losses From China Blastby
Parent Tata Motors posts surprise loss after one-time charge
Jaguar Land Rover quarterly retail sales plunged 32% in China
Jaguar Land Rover booked 245 million pounds ($371 million) in losses for the quarter through September after about 5,800 of its vehicles were damaged in a blast at China’s Tianjin port where they were stored.
Insurance claims may take some months to conclude, Jaguar Land Rover’s parent Tata Motors Ltd. said in a statement Friday. Insurance and other potential compensation will be accounted for when paid or confirmed, it said.
The losses incurred from the Tianjin port blast adds to Jaguar Land Rover’s woes in China, where deliveries have slumped 32 percent in the past quarter. Automakers from Toyota Motor Corp. to Volkswagen AG were also hit by the blasts at a warehouse at the northeast Chinese port that killed more than 100 people and destroyed rows of brand new cars waiting to be transported to dealerships.
Tata Motors’ net loss was 4.3 billion rupees ($65 million) in the quarter, while its luxury unit suffered a 92 million pound loss. Excluding the one-time charge, Tata Motors posted a profit of 15.4 billion rupees.
Shares of Tata Motors fell 1.9 percent to 396.15 rupees in Mumbai, before the results were announced. The benchmark S&P BSE Sensex index declined 0.2 percent.