Jaguar Land Rover’s plunged into loss in 2008 but is on track for a UK government loan guarantee once details are ironed out.

Tata Motors-owned JLR booked a net loss of GBP673.4m (US$1.11bn) last year, down from a GBP641.5m net profit in 2007, The Financial Times reported, citing papers filed last week with Companies House in London.

The ‘pink paper’, citing a person briefed on the talks, added the British government was preparing to guarantee a GBP175m commercial bridging loan for the luxury vehicle maker.

But Tata wanted a 12-month term while the government was offering six months and required board representation.

A week ago, The Daily Telegraph reported the UK government was becoming increasingly annoyed at Tata’s stance and had told it to either accept terms or risk the offer being taken off the table. But that report said the government had agreed to replace board representation with ministerial oversight.

According to Reuters, Tata Motors last month said JLR posted an after-tax loss of GBP306m for the 10 months of the last fiscal year to March 2009.