No plan to sell stake in Jaguar Land Rover, says Tata Motors
17 Aug 2020
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Tata Motors has categorically denied any plans to sell its stake in the British brand Jaguar Land Rover, and said the British marque's business continues to do well even in the face of the coronavirus pandemic.
The latest speculative come after such reports in Indian media about Tata Motors’ passenger car business in India, which, according to reports was to be sold off as it remained unprofitable for the company.
Tata Motors had earlier issued a statement terming the reports baseless and untrue. The latest report makes the reporting motivated. Tata Motors has issued a clarification on the JLR speculative as well.
“Unconfirmed and unsubstantiated reports have been published by some media alleging that Tata Motors may sell stake in Jaguar Land Rover (JLR).
Tata Motors categorically denies and dismisses any such intent. Jaguar Land Rover is and remains a key pillar of Tata Motors and the wider Tata Group.
We recently announced our results for Q1 and have indicated that we are maintaining solid liquidity despite the Covid-19 pandemic and expect to be cash positive from Q2 onwards.
Jaguar Land Rover business remains strong as it transitions to new electrified, autonomous and connected technologies to support its Destination Zero ambition,” Tata Motors stated in a website release.
The reports come after failed bailout talks between Jaguar Land Rover and Tata Steel with the UK government, leaving both firms to rely on private financing to overcome the impact of coronavirus on business.
Talks for an emergency funding fell through as Jaguar Land Rover did not qualify for taxpayer support, the Financial Times reported.
Jaguar Land Rover also was unwilling to accept decarbonisation requirements that would have forced the automaker to accelerate its programme of vehicle electrification and phase out the diesel cars that still make up most of its fleet, the Financial Times said, citing a source with knowledge of the discussions.
The bailout plan, titled "Project Birch," had been authorized by UK Finance Minister Rishi Sunak in May to rescue companies that are seen as strategically important, with the Treasury saying it may step in to support crucial businesses on a "last resort" basis after other options run out.
The report, citing a source familiar with the matter, said that the funding scheme became infeasible for Tata as it imposed strict conditions on any lending.
"Tata Steel remains in ongoing and constructive talks with the UK government on areas of potential support," Tata Steel said in an emailed statement.
The UK Treasury said it would not comment on individual companies.
Tata bought JLR from Ford Motor in 2008.
Jaguar Land Rover increased its savings target for this year to 2.5 billion pounds ($3.3 billion) after booking a 413 million-pound pre-tax loss for the quarter that ended in June.
The automaker has entered into agreements with lenders in China for a secured term loan facility of 5 billion yuan ($704.5 million), its first debt financing in China.
Former Renault CEO Thierry Bollore will replace Ralf Speth as JLR boss on Sept. 10. Speth, who turns 65 in September, will retire from the post and become the automaker's non-executive vice chairman.
