Jaguar/Land Rover asking UK gov't for money
Jaguar and Land Rover are having a Hell of a time trying to sell luxury vehicles in this armpit of a global economy, and parent company Tata Motors is looking for a big-time loan to keep the British Marquees afloat. In all, Tata is seeking £1 billion from the British government to to help pay the bills. That's a fairly large sum considering that it represents £67,000 to each of the British marquees 15,000 workers in the UK. Prime Minister Gordon Brown is said to be close to a decision regarding the loan, though it's likely the money would come with a stipulation that protects workers in the UK.
We'd say that sales at Jaguar and Land Rover vehicles are in really bad shape, but the truth is that we don't even know how bad things have gotten. Tata has decided to stop providing US sales data for its struggling luxury brands.
[Source: Drive]
Reader Comments (Page 1 of 1)
Avinash machado 10:05AM (11/24/2008)
I wonder if Tata is now regretting because they bought Jaguar and Land Rover. It might have seemed at that time an easier way to gain some market share in the luxury segment rather than starting from scratch, but now I wonder what they are feeling.
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moyoi 10:15AM (11/24/2008)
Well Ford really did a good job selling these brands, gotta sit back and chuckle.
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Kitko 10:16AM (11/24/2008)
Post-colonial revenge isn't working out, apparently.
May I dare to suggest a series of smaller models such as Jaguar Nano? Availability would be, naturally, restricted to the top two top castes and to members new British aristocracy who will find the car interesting as it will make navigating ever-congested Chelsea and Kensington roads easier.
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Alex 10:22AM (11/24/2008)
It would be premature to claim Tata's purchase of Jaguar and Land Rover a failure. They don't need to show their numbers to know that they are not selling well. If BMW, Audi, and Mercedes Benz are all having a rough go at selling cars, then you can assume Jaguar and Land Rover are in the same situation.
Tata made a long term investment when they purchased these two companies. I still have a huge amount of confidence that Tata will make them two proud companies again.
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apearlman 12:31PM (11/24/2008)
You're right, and this is appalling.
When you acquire another company, you're taking a risk. If you're not anticipating or can't absorb the possible short-term losses, then you have no business doing the acquisition.
Or to put it another way, I just purchased a Range Rover last year, and now events outside my control have caused me to regret it. Will Tata give me some money to offset my financial pain? No? Then screw them. Tata, put your hand back in your pocket and take your losses.
C Smith 10:41AM (11/24/2008)
There are too many so-called luxury cars out there doing nothing appreciably better than stuff at half the price. In the 30s depression a number of expensive brands disappeared and it won't be any different this time. British taxpayers have been milked for years to support the - mostly defunct - home owned and chronically badly run motor industry. Nobody wants to see people made redundant, but the energy crisis (for that is what all this is really about) has been looming for ages, and still the car builders stuck their heads in the sands. I'm afraid it's too late now and I should be allowed to keep my taxes for my own needs, which are pressing.
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Soccer Mom 10:47AM (11/24/2008)
Good timing is everything. In this case, the timing of the sale was very good for Ford. Not so much for Tata.
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Gary 11:04AM (11/24/2008)
Isn't Tata lobbying the wrong government? :-)
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letstakeawalk 12:05PM (11/24/2008)
I suppose it is debatable as to whether today's modern UK should be considered a colony of which nation: India or Pakistan?
I do understand your point - automakers are asking the countries in which they do business for funds. AFAIK, GM has approached the German, Canadian, Australian, Brazilian, and even Chinese for financial aid to be used specifically within those markets.
spike 2:59PM (11/24/2008)
Every major automaker is facing the same problem. Lack of sales and lack of credit. So Tata is plagued with the same problem.
On the positive side, Tata has acquired Jaguar at a time when it is being consistently ranked as #1 by JD Power and when it is in the midst of a major design and technology revamp.
Maybe a short term bridging loan will provide some respite to current market problems.
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Patrick 1:47PM (11/24/2008)
I think Tata could just buy FoMoCo now for cheaper than it paid for Jag/LR.
I think this loan would have a better chance of passing if Tata was public, with more insight into their financial performance.
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N 2:37PM (11/24/2008)
However much sugar you use; a sugar coated turd is still inedible.
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pcread 4:41PM (11/24/2008)
If the banks won't pass on the billions they were given by governments to the public, in the form of loans, the public can't buy the new cars that will keep the workers of Detroit, West Bromwich, Solihull etc. in work.
Anyway, the sales of the XF are bucking the global trend, as long as the pre-orders last. It's the thirsty SUVs from Solihull that are stacking up unsold. Hit first by the oil price, now by the credit crunch;, that's where the losses are mounting.
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ebm14 6:28PM (11/24/2008)
England needs to add more of its English culture in every sector of society since it has been declining from outside influences. Iow, just buy it back and never sell it to Ford or Tata.
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Amien 8:06PM (11/24/2008)
a
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Amien 8:07PM (11/24/2008)
Sorry for this post
pcread 11:48AM (11/25/2008)
@ebm14:
Whicj outside influences? The Angles? The Saxons? Or the Celts? Maybe the Picts? Or do you mean the Danes or the Romans or the Nomans?
That list goes on and on, right up to the Lithuanians.
England was a melting pot long before that term was ever coined for the US of A.
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Liza 1:52AM (2/13/2009)
Tata plans to inject “tens of millions” into Jaguar, Land Rover (0) Jaguar/Land Rover asking UK government for money (0);Jaguar and Land Rover cut 450 jobs (0). 2009 Focus RS info emerges after internet leaks.
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Liza
FSBO
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