Stand by Your Brands: Tata Motors Says It's Keeping JLR Around

stand by your brands tata motors says its keeping jlr around

Following a failed bid to secure a helping hand from the UK government, rumors arose that Jaguar Land Rover owner Tata Group was considering selling its controlling stake in the British automaker.

The so-called rescue package didn’t see the light of day because the government felt Tata wasn’t exactly in dire financial straits. If it wanted to rustle up some dough, it would have to look elsewhere. On Monday, Tata made it clear: Jaguar Land Rover will not become an orphan again.

As reported by The Guardian, both JLR and Tata Steel, both grouped under the Tata corporate umbrella (and the latter the operator of a huge Welsh steel facility), sought out government funds before being rejected by Her Majesty’s Treasury on the basis of their parent’s fiscal health.

“Unconfirmed and unsubstantiated reports have been published by some media alleging that Tata Motors may sell [its] stake in Jaguar Land Rover,” the company said in a statement. “Tata Motors categorically denies and dismisses any such intent. Jaguar Land Rover is and remains a key pillar of Tata Motors and the wider Tata Group.”

JLR lost nearly 1 billion pounds ($1.3 billion) in the first half of the year, but Tata characterizes its fiscal situation as stable. It wasn’t the only automaker to suffer from the arrival of the coronavirus pandemic; ahead of that arrival, too, the automaker had made headway in improving its profitability following an ultimatum from its parent. The pandemic means JLR’s recovery plan will have to cut deeper.

Come next month, the automaker will have a new boss in the form of former Renault top dog Thierry Bolloré.

Had JLR secured a financial lifeline from the UK, it wouldn’t have come free of strings. The government would have demanded the automaker expedite its electric vehicle program and the phase out of polluting diesel powerplants from its lineup.

[Image: Jaguar Land Rover]

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  • Inside Looking Out Inside Looking Out on Aug 17, 2020

    No one wants the crown jewels of British Empire? USA -check, India - check, who is the next in the line? Australia, NZ, SA, Canada, Ireland? The funny thing would be the French takeover of the Jewels.

  • Tstag Tstag on Aug 18, 2020

    Personally speaking I think Tata have done well with JLR. However with a shrinking sedan market, autonomous cars, electrification, etc I can’t help but think that JLR need a much bigger parent to help spread some of the investment costs. If you look at Land Rover then with the exception of the Discovery, every model sells well for high profit margins. Jaguars SUVs are doing OK, as is the F Type but Sedan are the problem. Fundamentals are good but headwinds are the issue. Personally speaking I think a deal with one of the Japanese makers would work best for JLR. A company like Toyota would be a great fit and would have the headroom to give them the focus needed over a number of years.

    • See 2 previous
    • WallMeerkat WallMeerkat on Aug 19, 2020

      It has been rumoured that of the Jag sedans, the XE/XF will have a single replacement model (possibly an A5 style fastback) and the XJ is confirmed as being an EV. Discovery seems a strange oddball, and many commentators this side of the atlantic are exclaiming the new Defender as a spiritual successor to the old Disco 3/4.

  • Arthur Dailey For the Hornet less expensive interior materials/finishings, decontent just a little, build it in North America and sell it for less and everyone should be happy with both the Dodge and the Alfa.
  • Bunkie I so wanted to love this car back in the day. At the time I owned a GT6+ and I was looking for something more modern. But, as they say, this car had *issues*. The first of which was the very high price premium for the V8. It was a several thousand dollar premium over the TR-7. The second was the absolutely awful fuel economy. That put me off the car and I bought a new RX-7 which, despite the thirsty rotary, still got better mileage and didn’t require premium fuel. I guess I wasn’t the only one who had this reaction because, two years later, I test-drove a leftover that had a $2,000 price cut. I don’t remember being impressed, the RX-7 had spoiled me with how easy it was to own. The TR-8 didn’t feel quick to me and it felt heavy. The first-gen RX was more in line with the idea of a light car that punched above its weight. I parted ways with both the GT6+ and the RX7 and, to this day, I miss them both.
  • Fred Where you going to build it? Even in Texas near Cat Springs they wanted to put up a country club for sport cars. People complained, mostly rich people who had weekend hobby farms. They said the noise would scare their cows. So they ended up in Dickinson, where they were more eager for development of any kind.
  • MaintenanceCosts I like the styling of this car inside and out, but not any of the powertrains. Give it the 4xe powertrain - or, better yet, a version of that powertrain with the 6-cylinder Hurricane - and I'd be very interested.
  • Daniel J I believe anyone, at any level, should get paid as much as the market will bear. Why should CEOs have capped salaries or compensation but middle management shouldn't? If companies support poor CEOs and poor CEOs keep getting rewarded, it's up to the consumer and investors to force that company to either get a better CEO or to reduce the salary of that CEO. What I find hilarious is that consumers will continue to support companies where the pay for the CEOs is very high. And the same people complain. I stopped buying from Amazon during the pandemic. Everyone happily buys from them but the CEO makes bank. Same way with Walmart and many other retailers. Tim Cook got 100m in compensation last year yet people line up to buy Iphones. People who complain and still buy the products must not really care that much.
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