India's Tata Motors Ltd. has reportedly agreed to inject "tens of millions of pounds" into luxury car maker Jaguar Land Rover, to prevent it filing for bankruptcy, while the British government is still considering taxpayer loan guarantees to keep it afloat.
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According to the Financial Times, the government has also appointed
accountants KPMG and the investment bank Rothschild to advise them on
the Indian group's complex finances and to assess demands from the car
sector. A Jaguar Land Rover spokesman said he could not comment on the
newspaper's report, but said repeatedly that Tata
has funded the two U.K. marques with hundreds of millions of pounds of
additional money since it acquired them in June for £1.7 billion ($2.6
billion). Meanwhile, a spokesperson for the government's Department of
Business repeated that while there were close contacts with the auto
industry, there was "no open check book" for company bailouts and no
announcements were planned. She said "Jaguar and Land Rover have owners
who are well resourced. They have the main responsibility for keeping
the company afloat." -
Jonathan BraudeSee FT story
