Chairman of Tata Motors, Ratan Tata said that Jaguar and Land Rover need £500 million ($734 million) in loan guarantees from the British government or the two companies could be forced to make additional job cuts
“If funds are not available the company will not be able to run,” Tata said. “So layoffs will take place.”
Jaguar and Land Rover employ 15,000 people in the U.K. at three factories and two development sites. The two companies laid off 500 workers in January and will cut 150 temporary workers at the end of April. 300 managers have been asked to leave the companies voluntarily.
According to a British government spokeswoman who spoke with Automotive News Europe, the government ministers are doing al they can to help Land Rover and Jaguar in their discussions about financing with British banks and the European Investment Bank.
Tata Motors purchased the two British brands from FoMoCo last summer for $2.3 billion.
– By: Omar Rana