Tata May not need UK Government Support for Jaguar-Land Rover Rescue

Tata May not need UK Government Support for Jaguar-Land Rover Rescue

Jaguar-Land Rover UK unit which was brought by Tata in 2008 in historical Deal between Ford and Tata was in deep financial crisis. The economy crisis axed the car sales in European and USA this inturn made many car makers to seek for Government Bailout and Bankrupcy.

The Jaguar-Land Rover UK unit which posed a 641.5 million pounds but it suffered 673.4 million pounds net loss in 2008-2009 fiscal. This made Jaguar-Land Rover to seek government help to raise fund and the company executives lobbing the government to provide guarantee to the fund raising for almost 12 month but there are differences between UK government and the Jaguar-Land Rover.

The government is only ready to provide 6 month guarantee for the loan raised. Yesterday JLR announced it has almost finalized its short-term funding facilities through commercial banks. The company also said it is in final stage of negotiating commercial arrangements for funding and guarantees for the approved £340-million loan. The press release says “These arrangements have been and are expected to be concluded without necessitating guarantees from the UK government,”.