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Tata Motors may scale down JLR investments

Right now, things aren't looking too good for the Tata Group owned Jaguar and Land Rover (JLR), which is looking at the UK government for providing financial aid.

According to reports in the media, the Tatas - with the help of the British government - are trying to procure short-term funding of anywhere between £500 million to £1 billion, which would allow JLR to pay its suppliers and prevent the company from running out of cash.

If the Tata Group is unable to secure loans for JLR, the company may have to scale back its investments in Jaguar and Land Rover and may also resort to job cuts and/or plant closures.

It seems that the Tata Group, which purchased JLR last year for a sum of £1.7 billion, is paying a heavy price for becoming to the UK's largest industrial employer. Whether the company can really turn JLR around and make a return to profitability remains to be seen.

[Via: indiaautomotive]

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