Jaguar Land Rover to receive Tata cash boost
Tuesday, 23 December 2008
LONDON, Dec 22 (CNN): The Indian owners of car manufacturer Jaguar Land Rover (JLR) have agreed to pump "tens of millions" of dollars into the luxury car brand to prevent a cash flow crisis, it was reported Monday.
The moves come as the British government ponders a public-funded bailout of the West Midlands-based automaker, the Financial Times newspaper said.
Tata, which bought JLR earlier this year, warned its support for the UK subsidiary did not negate the argument that the British government should provide bridging loans and credit guarantees to help the company and the car sector as a whole through the current financial difficulties, the FT said.
Last week, the ailing "big three" automakers in the US were given a boost when the Bush administration agreed a US$13.40 billion loan package. Now British Business Secretary Lord Mandelson has come under pressure to come up with a similar package for UK manufacturers.
JLR employs 15,000 workers in Britain and is seen as a vital contributor to the West Midlands regional economy in particular.
The moves come as the British government ponders a public-funded bailout of the West Midlands-based automaker, the Financial Times newspaper said.
Tata, which bought JLR earlier this year, warned its support for the UK subsidiary did not negate the argument that the British government should provide bridging loans and credit guarantees to help the company and the car sector as a whole through the current financial difficulties, the FT said.
Last week, the ailing "big three" automakers in the US were given a boost when the Bush administration agreed a US$13.40 billion loan package. Now British Business Secretary Lord Mandelson has come under pressure to come up with a similar package for UK manufacturers.
JLR employs 15,000 workers in Britain and is seen as a vital contributor to the West Midlands regional economy in particular.