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

Steph Willems
by Steph Willems

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]

Steph Willems
Steph Willems

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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.

  • 3SpeedAutomatic Once e-mail was adopted by my former employer, we were coached about malice software as early as the 90's. We called it "worms" back then.They were separating the computers that ran the power plants from the rest of the system in the early 00's. One plant supervisor loaded vacation pictures from a thumb drive on his work PC. His PC was immediately isolated and the supervisor in question was made an example of via a disciplinary notice. Word spread quickly!!Last I heard, they still had their own data center!! Cloud Computing, what's that?!?! 🚗🚗🚗
  • 3SpeedAutomatic At this time, GM had a "Me Too" attitude towards engine development:[list][*]the Euro luxury brands have diesels, so can we via an Olds V8[/*][*]variable value timing, welcome to the brave new world of Cadillac V8-6-4[/*][*]an aluminum block V8 engine via the HT4100, the go-go 80's[/*][*]double overhead cams, 4 valves per cylinder, no sweat, just like the Asian brands via NorthStar. [/*][/list]When you mindset is iron block and cast iron heads, life if easy. However, each time, GM failed to understand the nuances; intricate differences; and technical difficulty in each new engine program. Each time, GM came away with egg on its face and its reputation in ruin.If you look today, the engines in most Cadillacs are the same as in many Chevrolets. 🚗🚗🚗
  • 3-On-The-Tree I don’t think Toyotas going down.
  • ToolGuy Random thoughts (bulleted list because it should work on this page):• Carlos Tavares is a very smart individual.• I get the sense that the western hemisphere portion of Stellantis was even more messed up than he originally believed (I have no data), which is why the plan (old plan, original plan) has taken longer than expected (longer than I expected).• All the OEMs who have taken a serious look at what is happening with EVs in China have had to take a step back and reassess (oversimplification: they were thinking mostly business-as-usual with some tweaks here and there, and now realize they have bigger issues, much bigger, really big).• You (dear TTAC reader) aren't ready to hear this yet, but the EV thing is a tsunami (the thing has already done the thing, just hasn't reached you yet). I hesitate to even tell you, but it is the truth.
  • ToolGuy ¶ I have kicked around doing an engine rebuild at some point (I never have on an automobile); right now my interest level in that is pretty low, say 2/5.¶ It could be interesting to do an engine swap at some point (also haven't done that), call that 2/5 as well.¶ Building a kit car would be interesting but a big commitment, let's say 1/5 realistically.¶ Frame-up restoration, very little interest, 1/5.¶ I have repainted a vehicle (down to bare metal) and that was interesting/engaging (didn't have the right facilities, but made it work, sort of lol).¶ Taking a vehicle which I like where the ICE has given out and converting it to EV sounds engaging and appealing. Would not do it anytime soon, maybe 3 to 5 years out. Current interest level 4/5.¶ Building my own car (from scratch) would have some significant hurdles. Unless I started my own car company, which might involve other hurdles. 😉
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