London: If the UK government’s help does not come soon, Indian owner Tata Motors will have to cut down its investment plans for Jaguar Land Rover with possible job losses and plant closures, a media report said on Monday.
“If no government help is forthcoming soon, Tata will have to scale down its investment plans in Jaguar Land Rover to make its losses sustainable. That would result in more job losses-- and possibly plant closures,” the Guardian reported.
“Tata’s bankers are seeking to secure short-term finance of between £500 million and 1 billion to allow Jaguar Land Rover to pay off supplier payments due by the end of the summer and stop it running out of cash,” the report said. Tata have been seeking the help of the British government in terms of guaranteeing the loans.
“The group needs a fix for Jaguar Land Rover but staff cuts look unavoidable,” the report noted.
It further said that “Tata will reveal this week the price it has paid for becoming the UK’s largest industrial employer.”
While Tata Motors is expected to release the financials of Jaguar Land Rover, purchased for £1.7 billion, another group firm Tata Steel that owns Anglo-Dutch steel firm Corus, would also publish its fourth-quarter results.
“Expect a sea of red,” the report said about the two results.