Jaguar Land Rover set to be rescued by Tata Motors

Jaguar Land Rover which recently said it faces “unprecedented trading conditions” is set to receive an emergency multi-million pound injection from its Indian owners, Tata Motors.

Tata Motors purchased Jaguar Land Rover from Ford earlier this year for over £1 billion.

Last week, Jaguar Land Rover was in emergency talks with the Government, however, it emerged that Business Secretary, Lord Peter Mandelson, said the Government bailout was a ‘last resort‘ and that we need to make sure that all resources have been exhausted.

Debasis Ray, head of corporate communications for Tata, did not deny the report but would not disclose how money would be injected. Mr Ray said talks with the Government are ‘confidential and cannot be revealed‘.

Jaguar Land Rover has a workforce of 15,000.

The news comes as Japan’s largest carmaker, Toyota, is due to post its first operating loss in 71 years, following a surge in the value of the yen and a dramatic fall in exports.

Meanwhile, in the US, President Bush announced a $17.4 billion package of emergency loans to struggling carmakers General Motors and Chrysler, as they face the prospect of bankruptcy.

Meanwhile, in the UK, figures from the Society of Motor Manufacturers and Traders (SMMT) have revealed that the number of cars built in November in the UK was down 33% compared with the same month last year.

Story link: Jaguar Land Rover set to be rescued by Tata Motors