Fighting the economic downturn in Europe, Tatas are working to lower costs at their Jaguar-Land Rover and steel operations in the continent, including a possible sale of any "piece of business" but will try not to cut jobs, Ratan Tata said.
Tata took on so-called pundits who criticise the group’s prized acquisitions of JLR and steel-maker Corus as ‘stupid moves’ due to huge cash outgo, saying they seem to forget that an economic downturn happened soon after these takeovers.
“.... The steel company is really suffering because of the downturn in Europe and the UK,” he said. “All we are trying to do now is to reduce our cost base so that when we come out of that recession we will have a leaner company,” Tata said.
“We are trying not to have a (job) reduction, we are trying to reduce cost by rationalising units and if we can reduce cost by selling off any piece of business as we did last year.
“We sold off the slab making activity to a Thai company where the jobs get saved. We have been trying to do that, which why job losses have been somewhat small,” Tata said.
“There is nothing wrong with steel. The thing is with the economic level of activity in those (US and European) countries. Steel, unlike JLR, is not sold in 150 countries where Europe does not matter that much.”
“Corus or Tata Steel Europe will continue to be in pressure so long as the European situation remain as what they are,” he said.