The UK Government for Fund JLR

author image Rishi
Monday 18 May 2009, 00:00 AM

The British government has once again started discussions with Tata Motors regarding the guaranteeing ofloans to the company. The government is holding both long term and short term plans for funding the cash strapped JLR deal. According to an official from BEER, Business Enterprise and Regulatory Reform, the government has made it clear that the primary responsibility of funding the deal still remains with Tata Motors. However, the government will take into consideration any long term or short term financing requirements for the same.

Tata Motors acquired world’s two of the most luxurious brands, Jaguar and Land Rover, from Ford Motors. The deal was witnessed as a sign of growth and success for the company which succeeded the Corus deal from Tata Group. However, as the economic scenario changed drastically over a few months, Ratan Tata made a frank admittance that India’s largest and the oldest business house may have gone “too far, too fast.” He also admitted "at an inopportune time in the sense they were near the top of the market in terms of price.”

Tata Motors has made it clear that it does not want the government to bail out the company but only wants credit to be made available. On the other hand the BEER spokesperson also stated, “The (British) government wants to see JLR safely through difficult trading times and provide stability for the company and its employees. We regard JLR as a visible company with good long-term prospects. That’s why the government is having confidential discussions with JLR and its parent company over both short and long-term financing and business plans. These negotiations are continuing.”

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