It is one of the few global automobile companies that is investing heavily and growing rapidly defying the slowdown, but British marquee brands Jaguar Land Rover said on Tuesday it would have been long dead had Tata Motors not acquired it in 2008.
Jaguar-Land Rover CEO Ralph Seth addresses a press conference to announce the inauguration of the company's plant in Pune.
“Without the Tata Group, Jaguar Land Rover would not be alive. We did not get any help from the UK government. Not even a letter of support,” said Ralf Speth, chief executive officer, Jaguar Land Rover.
“What Tata Group then did was phenomenal. They not only paid for us, but also invested in us. We owe them everything and are trying to pay back for the trust they had in us.”
Tata Motors has been credited for scripting a dramatic turnaround in the fortunes of the two companies that in 2008 were saddled with a heavy debt and sliding sales.
Following sizeable investments in research and development and capacity expansions, which had stalled under former owners Ford Motor Corp, JLR’s finances improved even as Tata Motors’ own domestic finances went on a downward spiral in the last 12 months.
JLR’s dividends in the last three quarters are the only silver lining in Tata’s balance sheet this year.
Hit by a demand slump for its cars such as Nano and Indica and its heavy and medium duty trucks, Tata Motors posted record standalone net loss of Rs.458.49 crore for thee third quarter of financial year 2012-2013, against profit of Rs.174 crore in the year ago period.
JLR’s profits during the quarter saved the blushes for the parent firm allowing it to report a 52.2% decline to a consolidated net profit at Rs.1,636 crore.
“The two companies are very different in the segments that we operate but there is a possibility to create direct synergies,” Speth said.
“Our upcoming 4 cylinder 2.0 diesel and petrol engines for example can be used in some of Tata cars in a particular derivative. This engine can also be produced in India at a later stage.”