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Tata boss begs British government for assistance with JLR

By Matt Brogan |

Ratan Tata, chairman of Tata Motors, has warned that Jaguar Land Rover could make further job cuts unless the British government provides financial aid to the brands.

The brands have been suffering financial difficulties as a result of falling sales during the on-going global economic downturn with last year’s global unit sales of JLR vehicles down 12 per cent to 251,590 units.

Tata estimates that JLR needs £500 million (AU$1.049 billion) in loan guarantees from the British government. But UK Business Secretary Lord Mandelson said JLR must stand on its own because it is a private company.

“If funds are not available the company will not be able to run,” Mr Tata said. “So layoffs will take place. If the attitude of the government is who blinks first, the damage is going to be very devastating.”

The company has already laid off 850 temporary workers in December 2008 and a further 500 manufacturing positions went at the end of January this year. A further 150 temporary positions will go from the end of April and approximately 300 managers have been asked to leave voluntarily.

JLR employs about 15,000 people in the UK.


 
  • Marcoz

    Yeah so says the 2nd or 3rd Richest man in the world….Pay for it your self you tight wod…
    God that bugs me…

  • swampdawg

    Well that will put a hold on the Jaguar and Land Rover Nano development.

  • http://porsche Zorro

    One of the best things Ford has ever done, off load JLR on the eve of the financial crises. Ford laugh all the way to the bank, while Tata are left holding a flatlining baby.

    Superb.

  • http://www.littlepixiegifts.com.au Gift-Ed

    It was for Ford in the short term because they don’t have the funds to hold them over the current problems.

    But if they hadn’t mismanaged Jag for 20 years they probably would have been able to carry on.

    Now that the XF is doing well and the next XJ is sounding pretty positive Jaguar’s future is looking good. They even topped the latest JD Power satisfaction survey!

    LR is not such a bright case, but the new baby Range Rover sure looks good. I expect profitability will be a longer road for LR though.

  • Reckless1

    Can I get money from the government too – I bought shares and since the crisis I have lost money.

    I won’t get any, so why should TATA ?

  • Captain Mainwaring

    Sounds like he was sold a pup and now can’t pay for it.
    Bad luck I say.
    If Jag/LR goes down, I’m sure their rivals can easily supply whatever demand still exists for vehicles of this kind.
    Taxpayer prop-ups only perpetuate the problem at an insufferable cost.

  • Captain Mainwaring

    And I forgot to ask – why would stressed lower and middle-class taxpayers in the UK who are losing their jobs on a daily basis be interested in bailing out the maker of cars that only the toffs drive?

  • The Realist

    Where are all GM and Ford bailout advocates? They should be defending TATA to the death too!

  • Andrew

    Gift-Ed Says:
    “LR is not such a bright case, but the new baby Range Rover sure looks good. I expect profitability will be a longer road for LR though. ”
    LR made a profit of $US1.2B in 2007 with essentially the same cars they have now. The UK government should provide assistance, 15000 employees plus how many do their suppliers employ? It’s a lot of people just to say tough luck to.

  • mark

    this guy needs to harden the f**k up!!! sales are only down 12%, there are alot of other companies doing it rougher and not asking for loans. he is just looking for reasons to sack over paid staff n move things offshore!

  • Andrew M

    Mark,
    I wouldnt be surprised if this is just a convienient excuse either.

    Mullally the genius must be grinning like a cheshire.
    He seems to be the only one that predicted this down turn and battened down the hatches.

    This JLR deal is one of many reasons why there is plenty of money in the ford tank to see future models on the development board through to 2012 still able to see the light of day including the aussie designed T6 project

  • Stressed Middle Class UK tax payer

    I like that Salesman. Yeh why would I want to subsidise one of the riches foreigners on the planet so my boss who’s overpaid IMO can buy and run his V8 Rangey, then I get laid off cos the economy is failing. Besides I want a state pension when I’m older so stuff the foreign finacial leeches.

  • http://www.littlepixiegifts.com.au Gift-Ed

    Andrew,

    Thx for pointing that out. I had assumed they were making losses.

  • milkyway

    The only reason why Tata bought into Jaguar Land Rover is because Tata had lots of cash to throw around. What can they bring to the table? I can’t understand why they need assistance now?

  • Limited Slip

    Taxpayer funded bailouts of car companies is pissing alot of people off. A U.S. survey found over 60% of people dont want the U.S. Gov to give GM any more money……….and I agree.

  • TataFan

    Ratan Tata should take Jaguar and LR to India and close the factory in UK that he cannot sustain. He should continue making cars with that brand – as best as can be made in India. Surely, the brand name sells if the quality is not too worse.

    I don’t believe in bailing ANYONE in the so called ‘FIRST WORLD.’ They live on THIRD WORLD but don’t like that part of the world.

  • Reckless1

    Perhaps 60% of US citizens don’t know the difference between loan and gift.

    Maybe that’s why they all accepted the loan deals which caused all this crap in the first place – they don’t have a clue

  • Sic of Bailouts

    To all CEO’s who want bailouts from any populas in the world,BUZZ OFF.

  • slippage

    Mr Tata your company should be able to manage JLR as it is a recent aquisition, however even the Nano is miles behind schedule, what is going wrong?
    Tip of the day,
    Small cars out sell Jags and landrovers. You plan to sell Nano’s in Europe.
    Retool the factories as building nano’s is very basic.

  • RoFlmaTiC

    Funny you should try to back your loan / gift argument with that analogy Reckless1…

    You use the analogy of people taking out loans that they couldn’t pay back starting all this crap.

    That is EXACTLY what this “loan” is to GM. GM will be as able to repay the loan as much all those defaulting mortgagor’s were.