Tata Motors today said in a statement that it will not sell stake in Jaguar Land Rover (JLR).
Automobile giant Tata Motors today clarified that it will not sell stake in Jaguar Land Rover (JLR). Calling Jaguar Land Rover a key pillar of Tata Motors and the wider Tata Group, the company said that it does not even intend to sell the stake. The automobile firm added that the Q1 results have shown solid liquidity despite the disruptions caused by the coronavirus pandemic and it is expected that the firm will be cash positive from the second quarter. After a former director of Tata Steel and Tata Motors told media that the Tata Group would have to come up with a solution soon as the European operations are bleeding and indicated that the firm may sell stake in JLR and sell the UK steel operations, the market was flooded with speculations of the stake sale.
He had added that the talks with ThyssenKrupp on the merger of Tata Steel’s European operations are taking a lot of time, which is bad news. Recently, the bailout talks of Jaguar Land Rover and Tata Steel Ltd with the U.K. government have also broken as the governmnet said the Indian multinational was sufficiently financed and didn’t qualify for taxpayer support.
Now that the government has dismissed possibilities of financial support, JLR is poised to depend on private financing to offset the effects of the economic downturn. However, both businesses are in talks with the government on other areas of support like tax breaks, according to media reports. Meanwhile, Jaguar Land Rover reported a 44 per cent fall in net revenue at 2.9 billion pounds during the first quarter. On the results of Tata Motors, the company’s CEO had said that the management remains focussed on making the company more agile to improve its market, operational and financial performance by reducing costs, generating free cash-flows, and providing the best in class customer experience.