Weather Afternoon: 8°c Sunny spells Tonight: 5°c Partly Cloudy Night

Business

Tata faces $1bn bill to revive UK car brands

23 Dec 2008


India's Tata group may have to pump in at least $1 billion (£670.5 million) to revive the premium Jaguar and Land Rover brands it bought from Ford earlier this year.

That would come on top of any bailout from the UK government for the ailing car firm.

Jaguar Land Rover has about 16,000 employees in the UK and spends £400 million a year on research and development and £2.5 billion on suppliers. Its sales from June to September slipped 11.8% from the same time last year.

Tata is looking at a range of options to raise cash for the British brands, according to reports in India.

"We will do everything in our ability to resource all our operations," a Tata Motors' spokesman said.

Tata Motors paid $2.3 billion to buy Jaguar Land Rover from Ford, just as global auto sales began collapsing.

Tata Motors is already injecting "tens of millions of pounds" into Jaguar Land Rover to prevent an immediate cashflow crisis but much more may be needed.

"The company is spending whatever is required to the best of its abilities," said Tata Motors' Debasis Ray.

The British government has been tight-lipped about any prospect of taxpayer help for the carmaker.

Tony Woodley, joint general secretary of Unite, the biggest trades union, said Jaguar Land Rover was expected to receive support from the government before Christmas.

Reader views (0)

 Add your view

No comments have so far been submitted.


Add your comment

 

Terms and conditions Make text area bigger You have  characters left.

We welcome your opinions. This is a public forum. Libellous and abusive comments are not allowed. Please read our House Rules.

For information about privacy and cookies please read our Privacy Policy.


 

 

  • Relief for Sir Mervyn as inflation takes a tumble Osb and mervyn Bank of England Governor Sir Mervyn King has gained a major victory in his battle to bring down the spiralling cost of living as inflation...
  • Yell dives as print blow outstrips digital leap Yell Beleaguered Yellow Pages directories publisher Yell has seen its shares plunge as much as a quarter after a worse-than-expected slump in...
  • BHP and Rio bet on copper with mine expansion Rio Tinto The future is looking copper-coloured for BHP Billiton and Rio Tinto after the mining giants announced plans to invest $4.5 billion (£2.9...
  • Why saving may start to make sense again - just Piggy bank savings Long-suffering savers at last had some good news today when inflation fell below 4%, meaning there are now seven standard savings accounts...
  • City says timing wrong in Moody's UK rating threat Euro City economists have raised doubts over the timing of the threat by rating agency Moody's to slash the UK's AAA sovereign credit score,...
  • Hotel giant goes for Olympic gold as profits wow the City Intercontinental Hotels Hotelier InterContinental Hotels is looking to emerging markets and especially China to drive future growth
  • Bloomsbury takes a new passage to India Fashion book Publisher Bloomsbury is to set up a new business in India to take advantage of rapidly growing demand from the country's English-speaking...
  • Thai disaster floods Lloyd's with a bill for £1.4 billion Lloyd's of London Thailand's worst flooding in 50 years last October will cost the Lloyd's of London insurance market $2.2 billion (£1.4 billion), it has...
  • Bank of Japan increases stimulus to boost growth Japan Bank of Japan has added 10 trillion yen (£83 billion) to its 20 trillion yen pool of funds set aside for asset purchases in a surprise move
  • Brammer sees profits jump Box of tricks: DIY tools can be expensive to buy Industrial services group Brammer has posted a 41% jump in full-year pretax profit on strong demand
  •  
    Market Roundup
    TUESDAY UPDATE

    Valentine's massacre as City dumps Hampson

    No one likes getting rejected on Valentine's Day

    More