Tata may cut jobs at Jaguar in UK
Tata Motors has announced that it may have to cut jobs at Jaguar as demand for this luxury car has fallen along with the recession. Jaguar already faces a pre-tax loss of ₤281 million. Globally sales of Land Rover fell by 35 percent while Jaguar's new XF model rose by 1 percent.
Jaguar Land Rover has 14,500 employees on its rolls and has already cut 2,000 jobs. Now Tata Motors warns of further job cuts and even plant shut downs. The company is attempting to secure jobs by winning guarantees from the UK Government on a £340m European Investment Bank loan.
However, the negotiations have been lengthy, with the state demanding strict terms for any financial support. On the 29th of June, six models of the Jaguar and Land Rover are going to launch in India. Though India's premium car market is small, the potential for the sale of luxury brands is huge.
But currently the cars would be imported into India and not made there. This is the first time in eight years that Tata Motors has reported a loss thanks to its huge losses due to its acquisition of JLR.
[Via: globalmotors]