Jaguar Land Rover could be forced to cut more jobs after suffering a 280 million, 10-month loss.
The company's owner, Tata, also said that more shutdowns were likely at Jaguar Land Rover's factories in Castle Bromwich, Solihull and Halewood.
Jaguar Land Rover currently employs around 14,500 workers and has already made 450 redundancies this year.
Sales of its cars fell by 32% in the 10-month period to March 31.
Tata is now in talks with the Government, which has said it's willing to help Jaguar Land Rover overcome its current financial problems.
A spokesman from the Department for Business, Innovation and Skills said: 'The Government has said that it is willing to help because 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.'
The warning of job losses at Land Rover came at the same time as Tata announced losses of 315 million for the year to March 31.