Midland 4x4 manufacturer Land Rover said it was hopeful of turning in a profit this year as it emerged it had plunged deep into the red during 2004.
The Solihull firm recorded a pretax loss of #228 million for the 12 months to the end of December, a year after it made its first profit under parent company Ford's ownership.
Land Rover also received cash injections totalling almost #260 million during the period.
Ford gave Land Rover, a member of its Premier Automotive Group (PAG) #166 million, while Land Rover Holdings pumped in #93.7 million.
The figures illustrated the mounting problems at Ford, which has said previously that it expected PAG to produce a third of its overall profits by 2006.
Ford does not publish an individual break down of its profits for each individual arm of the business, but the loans and losses were revealed in accounts lodged with Companies House.
The losses came as Land Rover is attempting to improve the quality at its Lode Lane plant, under the so-called Road Map agreement.
Sister company Jaguar has abandoned plans to break even by 2007 as it battles with falling car sales.
Its results have not yet been lodged.
Land Rover spokesman Mark Foster said he was hopeful the company had turned the corner and would return to profit this year.
He said: "Although we made a loss in the first quarter of 2005, we made a profit in the second quarter.
"We are moving forward with a number of great new products and we are making very good progress on improving our quality, getting the right working practices.
"If we continue in this way, we should make the right side of the balance sheet this year."
Mr Foster said the capital injection was done by cancelling Ford's loans to Land Rover, which he described as a tidying up exercise.
He said the losses related to the investment ploughed into the new production lines at Lode Lane to produce the new Discovery 3, new model year Range Rover and Range Rover Sport.
He added that they were consolidated figures which did not include overseas revenue, with around 70 per cent of Land Rover's vehicles being sold abroad.
Turnover was higher in 2004, at #3.287 billion compared with #3.140 billion, showing the company was moving in the right direction, he said.
He said: "We have invested heavily in the new models. We have spent around #215 million at Solihull on new equipment and machinery to produce the new Discovery, and Range Rovers.
"We are glad to say these models are getting a very favourable reception in the market place, particularly the Range Rover Sport.
"You have to put money into developing new products, and that investment is going to start bearing fruit.
"We hope we can keep the momentum going and we would hope the sort of results we achieved in the second when we moved into profit can be maintained.
"I would never say never, but I think we have turned the corner and are making positive progress."