• May 11th 2009 at 1:30PM
  • 12
We don't know how many times through the millennia one gentleman has told another, "Be careful with her – she's beautiful, but she's expensive." We would like to know if Alan Mullaly offered that warning to Ratan Tata (above) before the latter bought Jaguar and Land Rover (JLR). As with the Blue Oval before it, Tata Motors is about to throw billions at the English luxury marques and it is looking for help doing it.

Tata wanted the British government to guarantee a £340 million loan ($515M USD) Tata received from the European Investment Board. The government refused to underwrite the entire amount, and it was written that the government additionally wanted Tata to invest up to another £400M ($605M) in JLR (on top of the £900M ($1.36B) Tata pitched in last summer) and put £50M ($76B) on the table before it would underwrite anything. The government is also said to have wanted veto power on top executive choices and labor plans.

Those talks, unsurprisingly, went nowhere. Now Tata is looking to banks for £1 billion ($1.5B) in cash and underwriting help. Citigroup is has begun the search for lenders to provide the money by September, which everyone expects to come with heavy-duty interest rates. With the state of the market and Tata's other recent purchases, 2009 is shaping up as an expensive year for the Indian company.

[Source: Global Motors | Image: Sajjad Hussain/AFP/Getty]

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 6 Years Ago
      Tata may keep some workers in UK (wood, leather craftmen) and move assembly to India where labor would be a lot cheaper.
      • 6 Years Ago
      Land rover made profit last year, their best year ever since they exist.
      jaguar was getting better and better, expecting to be profitable this year...without the credit crunch
      • 6 Years Ago
      That man has the eyebrows of gods.
        • 6 Years Ago
        Despite your racist comment, airsuckman, Tata builds not only cars, but makes trucks, Tea (which tata is most famous for, Tetley) and many other food products, telecommunications (Satellite TV, phone service provider), raw materials (tata steel) and other "heavy industry." Many other indian companies have multiple branches in different industries. And seeing how Tata's been around longer than the Big 3, (or Big 2 now?) i'm pretty sure they know how to run a series of heavy industries.
        • 6 Years Ago
        you obviously don't know the facts and its funny that it is actually you who is passing this empty racist comment.
        ratan tata is no rick wagoner, you obviously don't know a bit about this great entrepreneur
      • 6 Years Ago
      £50M ($76B)

      I know Dollar depreciated some, but I'm sure 50 million pounds is not 76 billion dollars.
        • 6 Years Ago
        or $75.555 MILLION in actuality.
      • 6 Years Ago
      The Right Answer : >> 50 million pounds is $83,222,888.10
      • 6 Years Ago
      Who is going to lend a company, who never makes a profit money. I see this as a sinking ship.

      TATA should have seen this coming before they bought JAL but I guess they had their blinders on.

      Any thoughts on whether they will also close their Experience Centers / Driving Schools which are nationwide.
      • 6 Years Ago
      Seems like Jaguar and LR are like boat anchors.