Tata Motors is seeking a momentary relief from the downfall of its buy Jaguar Land Rover. The company explores all means to continue with it, overcoming the difficult phase, undergoing for the last 7 months, said its Chairman Ratan Tata.
In this connection the company has addressed the consultancy of KPMG International and Roland Berger Strategy on the terms of cost of this luxury unit ( which Tata brought to India at Rs$2.5 billion last year).
The sale of JLR has fallen since its launch, pushing Tata to face the first ever huge loss in 7 years (pre tax loss of Rs873 crores). The British company has earlier announced that it has decided to shut down the two factories in England’s West Midlands and provide jobs at the third one so as to run the show profitably.
General Electric Co’s GE Capital division, the lender for the make of Jaguar Land Rover has procured $286 million for the five year working capital. Tata Motors, for its part has generated $750 million last month by offering securities in a bid to refinance the debt taken in this regard.
Correction : JLR is only planning to close one of it’s two West Midland’s operations, not both. The decision has not been announced as to which.
Your Statement – “The British company has earlier announced that it has decided to shut down the two factories in England’s West Midlands and provide jobs at the third one so as to run the show profitably.” is wrong. It is only planning to shut down one of its 3 factories and not 2.
Tan