MORE jobs may be cut at car maker Jaguar Land Rover after the company revealed a 10-month loss of £267m.

The UK company’s Indian owner Tata said more shutdowns were likely at Midlands and Merseyside factories.

Jaguar Land Rover, which has about 14,500 staff, said its sales had fallen by 32% to 167,000 in the 10 months to last March 31 as the car market was hit by the global recession. It had been profitable in the first half of the year.

Tata has cut 2,000 workers at Jaguar Land Rover so far, leaving it with 15,000, but hinted at further cost-cutting moves to come.

The group said: “The global meltdown, especially after July 2008 with vehicle financing and demands drying up, impacted the auto industry worldwide, including Jaguar Land Rover.” Tata said it was taking a “number of urgent and long-term measures” to stem losses at the business.

“These include cutting costs drastically and working on a plan of substantial cost reduction, aligning production with demand and tight control over cash flows.”

Tata said Land Rover sales had fallen considerably in 2008, although Jaguar had been able to maintain sales after a “very strong consumer response“ to the new XF sedan.

The company said it was continuing talks with the UK Government about the possibility of some form of financial assistance.

A spokesman for the Department for Business Innovation and Skills said: “The Government has said that it is willing to help as it regards Jaguar Land Rover as a viable company with good long-term prospects. We recognise that trading conditions for the car industry are difficult at the moment. Talks are progressing with Jaguar Land Rover and Tata over terms and arrangements of both the short- and long-term financing.”

Meanwhile Tata said it had made a loss of £315m in the year to March 31, which includes the 10 months since it bought Jaguar Land Rover from Ford for £1.5bn.