Tata gives Jaguar cash boost pending bail-out decision
LONDON (AFP) - - India’s Tata Motors, which owns Jaguar Land Rover, has agreed to inject “tens of millions” of pounds into the British car company to tide it over while London considers a bail-out, reports said Monday.
The Financial Times, quoting people close to Tata, said the emergency aid was intended to prevent an immediate cash flow crisis.
It comes on top of “hundreds of millions” of working capital provided since Tata bought Jaguar Land Rover from Ford in March, the business daily said.
Business Secretary Lord Peter Mandelson said last week that the British government has talked to Jaguar Land Rover about a possible bailout as the car company struggles with the economic downturn, but no decisions had been taken.
The FT said Tata still expects the taxpayer to provide longer-term support for Jaguar Land Rover, to protect thousands of jobs in Britain.
Pressure is growing on London to act to save its car manufacturers after US President George W. Bush unveiled a 13.4 billion dollar rescue loan for carmakers General Motors and Chrysler on Friday.
