Homegrown auto maker Tata Motors is likely to chip in with 670 million pounds to bail out its ailing subsidiary Jaguar Land Rover. The company is examining whether it can enlist the help of its financial services business— Tata Capital, as also tap its biggest shareholder Tata Sons, the Daily Mail reported on Wednesday. The sum is higher than the “tens of millions” that the company was intending to invest in JLR as reported earlier in The Times.
The newspaper reported that the amount would be in addition to any financial aid it receives from the UK government. JLR as part of UK's Society of Motor Manufacturers and Traders has asked the government for a 1 billion pounds loan to be made in commercial terms.
When contacted Tata Motors spokesperson Debasis Ray declined to make any comments. “Tata Motors does not have any comment to make on reports on funding required for Jaguar Land Rover,” he said. “Suffice it to say that the company is resourcing all its businesses in the UK or India, to the best of its abilities.”
The newspaper quoted a company official stating that Tata Group continues to fund a 400 million pound research and development programme at JLR in addition to a 800 million pound three year product development programme.
It also said that it was unlikely that any deal with the government would be secured before January. JLR employs around 16,000 people in UK.