Tata to pump millions in Jaguar-Land Rover

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“Tens of millions” of pounds pumped into Jaguar-Land Rover by Tata would not only provide a new lease of life to the Firms, but would also prevent a likely and immediate cash flow crisis.
The Indian firm had earlier this year, bought the duo for $2.3 billion from Ford Motor and injecting more money into J-LR would further strain Tata Motor’s finances. Car makers around the globe have been hit by a collapse in demand as the economic slowdown spreads access to credit is choked off by the financial crisis.

The British daily reported this week, that the prospect of UK government assistance to help keep J-LR afloat had helped the company owners to secure last-minute funding from the banks.
British Prime Minister Gordon Brown said on Friday that the government wanted to help the car industry through the economic downturn but the main responsibility lies with the carmaker’s owners.
The US last week announced a $17.4 billion loan package to rescue its stricken auto makers. The Canadian government too, got into the act and put up an additional $3.3 billion in emergency loans the day after.

Tata had entered the global scene several times earlier. A tie up with the then MG Rover in order to dispatch the CityRover a.k.a. the Tata Indica proved fatal. Tata is also famous for engineering the Nano, a $4000/Rs.100,000 lakh car aimed at the masses. Watch this space for more updates!

Source: The Times of India