Talks with UK for guarantee on: Tata

Written by fe Bureau | Mumbai | Updated: Jun 30 2009, 04:37am hrs
Tata Motors is pursuing its talks with the UK government regarding procuring a guarantee for the 340 million that has been sanctioned by the European Investment Bank (EIB), chairman Rata N Tata said on Sunday. He also said the company is determined to see the iconic brands through the present downturn.

We are in talks with the UK government for the guarantee and are hopeful to find a solution very soon. Our funding plan will then progress and we can see through this downturn. The EIB loan includes an element for research and development, he said.

JLR unit has posted a net loss of 281 million (around Rs 2,275 crore) in the first 10 months of the financial year to March 2009. There has been a drop of 32% in the overall sales of JLR during the period to 1.67 lakh units from 2.46 lakh units. While the fall in sales of Land Rover was 40%, sales of Jaguar fell just 4%. All the major markets, such as North America and the UK, saw huge drop in demand. Russia and China, on the other hand, showed some signs of growth.

Earlier, an official of the British governments department of Business, Enterprise and Regulatory Reform had said, that the government wants to see JLR safely through difficult trading times and provide stability for the company and its employees. We regard JLR as a visible company with good long-term prospects, he had said. That is why the government is having confidential discussions with JLR and its parent company over both short and long-term financing and business plans. These negotiations are continuing, the official said, according to report in May.

Stressing that the decision to go in for acquiring the brands for Rs 12,000 crore last year, Tata said, once the two brands emerge out of the downturn, We want to look back and say that it was a great decision to have bid for these (brands).