India's Tata Motors, which owns Jaguar Land Rover, has agreed to inject "tens of millions" of pounds into the company to tide it over while the government mulls a bailout, reports said on 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 paper said.
Business Secretary Lord Peter Mandelson said last week that the 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, in order to protect thousands of jobs.
Pressure is growing on the government 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.
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 paper said.
Business Secretary Lord Peter Mandelson said last week that the 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, in order to protect thousands of jobs.
Pressure is growing on the government 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.
No comments:
Post a Comment