Press Report : Tata pumps millions into Jaguar Land Rover
Rupert Neate, Daily Telegraph, 22nd December, 2008
The Government had said it would not provide the company with state aid until it was satisfied that Tata had done all they could to help the struggling luxury car maker. “The company is resolved to do all it can to help all its businesses” a Tata spokesman said. “The entire world has gone into a downturn these are extraordinary times.” He said that it was “difficult to quantify” how much money the company has pumped in, but it is understood to be tens of millions of pounds.
Lord Mandelson, the business secretary, is considering whether Jaguar Land Rover still needs a state aid package of hundreds of millions of pounds, or whether Tata can provide enough capital on its own. “The Government cannot be a first call for help in these circumstances. The owners have to look to themselves and their own resources,” he said. “If there is anything that the government can appropriately do for any such company, then it will have to meet – and pass – some pretty tough tests.”
Tata had said it is also facing cashflow difficulties due to a drop in the price of steel, one of its key products. The Government is facing calls to follow the lead set by President George Bush, who last week agreed to lend $17.4bn (£11.6bn) over three months to keep Chrysler and General Motors afloat.
Jaguar Land Rover employs 15,000 in the Midlands and Merseyside and tens of thousands more jobs are dependent upon its supply chain.
[Source: Daily Telegraph]