Trouble brewing in Tata Motors’ European units

Jaguar-Land Rover (JLR), the UK-based luxury car manufacturing arm of Tata Motors Ltd, is staring at a potential production loss, with workers supplying auto parts to its plants in the UK set to strike work next week.

The workers of logistics firm DHL serving JLR's production lines in West Midlands and at Halewood, as well as a parts distribution factory in Ellesmere Port, have decided to stop work on 28 August over a pay dispute.

Addressing his first annual general meeting as chairman, Cyrus Mistry, who took over from Ratan Tata this year, said alternative arrangements were being made to avoid production loss at JLR.

''The matter is between the union and DHL. JLR is in discussion with DHL but at this point in time, we are looking at making alternative arrangements,'' he said.

Tata Motors is also mulling what to do with its Spanish bus-manufacturing subsidiary Hispano Carrocera, in the wake of the slowdown that has hit automakers in Europe.

"The Spanish market is challenging. We are examining various strategic options," Mistry told shareholders at the company's 68th AGM.

Mistry, however, did not provide details on the options the company was taking into consideration.