Tata to inject cash into JLR, but unions call for government money
Author: Robin Brown
Published: 22 December 2008
Owner Tata Motors is to plough 'tens of millions of pounds' into troubled Jaguar and Land Rover in response to several weeks of speculation over the health of the luxury car-makers.
Representatives are thought to have been lobbying the British government for weeks for government aid, a request business minister Peter Mandelson is thought to have resisted.
Mandelson had questioned why new owner Tata Motors had been unable to divert its own cash into JLR, and apparently received his response late last week with Tata's announcement - revealed in the Financial Times.
But analysts question whether Tata can afford to divert the necessary resources to prop up JLR in the long-run without recourse to government-backed credit lines and loans.
The Indian domestic market has suffered as badly as European markets, and Tata Motors' $2.3bn outlay on purchasing JLR from Ford has added a significant debt to the subsidiary.
Tata Motors' financial difficulties have come at a time when parent company Tata Group has recently announced an expensive F1 sponsorship deal.
Automotive manufacturer representatives and unions have called on the government to urgently inject cash into JLR, safeguarding 15,000 UK jobs, but the government is thought to be reluctant to commit taxpayer money to the company.
See Also:
Click here for more Jaguar stories
Click here for Jaguar cars data
Click here for more British marques stories
Click here for more Business and Industry stories
Click here for more Car sales and analysis stories
Click here for more Tata stories
The British car industry: Who owns who; what names might return; and whatever happened to Austin, Rover and Morris?
News and analysis of what's happening in the car industry - at home and worldwide.
Watch video news for the automotive industry in the UK, US, Europe and Far East, with daily updates on new models, motor shows and global automotive markets.
New-car and van registrations in August drop 20 per cent over the month, used car values are worst since early-90s recession. The recession hits the UK car market.
A list of the new road tax bands as described in the 2008 budget. Cars are placed in VED (Vehicle Excise Duty) bands acording to the amount of carbon dioxide emitted by the vehicle.
advertisement
Mazda has revealed that the iconic MX-5 sportscar has surpassed the 100,000 sales milestone in the UK, 20 years after hitting the shores. | 02/09/2010 14:06:54
Hyundai is set to unveil its next generation B-segment MPV at the Paris Motor Show in the shape of the ix20. | 02/09/2010 12:00:01
Auto Express has launched a campaign to expose the ‘scandal’ of car manufacturers refusing to publically acknowledge unreliable or faulty cars. | 02/09/2010 11:41:19
Mini was the cleanest car manufacturer in the UK over the first half of 2010, according to a new sales-weighted pollution index. | 02/09/2010 11:18:14
An ECU remap to improve BMWs 245 bhp, 3.0 litre diesel engine has been released by car tuners Superchips. | 02/09/2010 10:53:38
|01/09/2010 10:05:56
Toyota is making a return to the mini MPV segment with the world debut of the Verso-S at the Paris Motor Show.
|01/09/2010 15:14:16
Ferrari has issued a worldwide voluntary safety recall of all 458 Italia models produced up to the end of July 2010 in response to five ‘thermal incidents’ that have made waves in the media recently.
|31/08/2010 10:39:27
The first details of the Citroën DS4 have been released ahead of it going on sale in 2011.
|31/08/2010 11:56:36
Volvo is launching two new high performance four cylinder 1.6 litre petrol engines for its new S60 and V60 cars.
|31/08/2010 12:25:57
The M6 Toll road has failed to significantly reduce congestion and lost its operators cash, according to a new report.
|13/11/2007
German sports car manufacturer marches on as it post a monster €5.85bn profit.
|05/09/2008
New-car and van registrations in August drop 20 per cent over the month, used car values are worst since early-90s recession. The recession hits the UK car market.
|20/11/2007
Around 400 people a day risk damaging their car by misfuelling, and filling up with gas is a mistake that could cost thousands. So what do you do if you´ve filled up your diesel car with unleaded petrol?
|19/09/2008
20 of the best 90's TV car adverts showcase an industry wising up to the buying power of women, and putting the battle of the sexes at the forefront of car commercials.
|01/10/2008
Euro Car Parts has acquired Pinco 1555 Ltd, including all 53 of LSUK's 53 branches, together with subsidiaries M I Diesel Products, Protech Automotive (UK) and Yeovil Rewind.
Search Motortorque:
No readers comments
Be the first to write a comment on this article