Jaguar has been unveiling new models and the sales of Range Rover luxury SUV are also still high. But despite of all these facts, the Jaguar and Land Rover duo is unable to turn a profit for 2008 and same is the scene in 2009 too.

The parent company of the British brands, Tata Motors Ltd. announced that it will close one of the three Jaguar- Land Rover assembly plants in England by 2014 to cut costs. The plants that are at risk are in Castle Bromwich which makes Jaguars, and in Solihull, which makes Land Rover models. Tata will decide which plant to close within the next 18 months.

Another British plant, in Halewood, will remain open and will build the production version of the LRX.

The Castle Bromwich site employs around 2000 workers, and the Solihull site employs about 5000 employees. Workers at the closed plant will be offered jobs at Halewood.

The global economic crisis has taken a toll on Jaguar and Land Rover. The combined sales of the two brands dropped 52 percent in its first fiscal quarter. Jaguar Land Rover also posted a loss of $100 million in the fiscal quarter.

The economic collapse and the resulting drop in new-car sales indicated that the Jaguar and Land Rover factories were running at less than 60 percent of capacity. Over the past 12 months, the unit has cut production by more than 100,000 units, cut 2,500 jobs and frozen pay.