Tata looks for 100m pounds for Land Rover Jaguar

Posted on Wednesday, 2 September 2009 , 10:09:55 byEmil

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Tata looks for 100m pounds for Land Rover Jaguar

Tata Motors - Indian carmaker wants to raise 100 million pounds approximately for its brands - Land Rover and Jaguar, covering maybe the lost posted by the 2 units last year. Tata had 41 million pounds net loss for the quarter terminated in June, down from eighty million pounds profit on the same period of last year.

Tata has unveiled already, autocar.co.uk reported, that it got the commercial banks' OK, including ING, Bank of Baroda, GE Capital, Standard Chartered and Bank Ireland subsidiary Burdale, for the one hundred million pounds loan. The question is: Tata Motors will revive Land Rover Jaguar using just 1 million million pounds? The analysts think not.

Ashvin Chotai, the Intelligence Automotive Asia's director of consultancy, told Financial Times: Jaguar Land Rover is difficult to have it revived; the parent firm might be in need for more money to do this. He affirmed 'We’ve seen the bottom of the luxury market, but the road to recovery will be slow. JLR will continue to be a drain on Tata’s financial resources for a while'.

Tata Motors made earlier current month an announcement that it secured private JLR funds; the UK government was happy with that and offered support also for the Indian carmaker. Peter Mandelson, the UK Business Secretary said 'The fact that the banks and commercial capital markets are meeting JLR's funding is a clear sign of confidence in the company, its products and the automotive sector. This additional funding will allow JLR to invest in future models and successfully launch the new XJ saloon on schedule and updated Land Rover models later this year'.

Mandelson continued 'The Government had offered bridging finance from the Automotive Assistance Programme if necessary. We understand the Tata group will now be successful in resolving longer term financial needs but we are willing to help again if necessary. This is a good and encouraging outcome for JLR, its workforce and its supply chain'.