London, Dec 22: Tata Motors Ltd will be injecting millions of pounds into the Jaguar Land Rover to save the company from crisis, says a Financial Times report of Monday, Dec 22. The year long global economic crisis had affected Jaguar Land Rover Company that was purchased by Tata Motors for $2.3 billion from Ford Motor Co. The move by Tata, comes on top of a millions of pounds of working capital it has provided to the British firm, the paper said citing sources close to Tata.
The Times newspaper reported on Monday, Dec 22 that the prospect of British government assistance worth millions of pounds to help keep Jaguar Land Rover afloat had helped the company's owners to secure last-minute funding from the banks.
It quoted senior figures in the British civil service as saying that British Prime Minister Gordon Brown, Chancellor (finance minister) Alastair Darling and Business Secretary Peter Mandelson had agreed that assistance for Jaguar would be necessary to prevent its collapse. A spokesman for Britain's Department for Business, Enterprise and Regulatory Reform told Reuters: "The government stands ready to help companies in the current difficult economic circumstances but does not have an open cheque book."
"The government has been in regular contact with Tata over Jaguar." Last week Mandelson confirmed that he had held talks with Jaguar Land Rover, which he said was under "particular strain".
Brown said on Friday, Dec 20 that the government wanted to help the car industry through the economic downturn but the main responsibility lies with the carmakers' owners.
Trades unions have called on the government to step in to save an industry employing tens of thousands directly and indirectly through suppliers. The United States last week announced a $17.4 billion loan package to rescue its stricken auto makers.
OneIndia News (With inputs from Agencies)