Jaguar Land Rover's trouble mounts, bailout talks with Tata Steel fall through

Bailout talks between Jaguar Land Rover and Tata Steel with the UK government have ended, leaving both firms to rely on private financing to overcome the impact of coronavirus on business
By : Bloomberg
| Updated on: 17 Aug 2020, 08:45 AM
JLR was against UK government's strict condition on decarbonisation that would have forced it to speed up EV transformation to phase out diesel cars. (File photo) (REUTERS)
JLR was against UK government's strict condition on decarbonisation that would have forced it to speed up EV transformation to phase out diesel cars. (File photo) (REUTERS)
JLR was against UK government's strict condition on decarbonisation that would have forced it to speed up EV transformation to phase out diesel cars. (File photo) (REUTERS)
JLR was against UK government's strict condition on decarbonisation that would have forced it to speed up EV transformation to phase out diesel cars. (File photo)

The UK government’s bailout talks with Jaguar Land Rover and Tata Steel Ltd. recently broke off, the Financial Times reported, citing people it didn’t identify.

Talks between the UK’s Treasury and the companies, both owned by Mumbai-based Tata Group, came to a halt after the government concluded the Indian multinational was sufficiently financed and didn’t qualify for taxpayer support, according to the report. JLR also balked at the stringent conditions tied to any lending, including decarbonization requirements pushing electric vehicles.

The failure to reach a deal likely leaves the companies reliant on private financing to weather the economic downturn. Both businesses remain in talks with the government on other areas of potential support like tax breaks, which could extend to state loans in the case of Tata Steel, the FT said.

Similar Cars

Find More Cars
Land Rover Range Rover Evoque (HT Auto photo)
Land Rover Range Rover Evoque
1998 cc | Diesel | Automatic (Torque Converter) | 14.71 kmpl
₹64.12 - 66.6 Lakhs**Ex-showroom price
Land Rover Range Rover Velar (HT Auto photo)
Land Rover Range Rover Velar
1997 cc | Petrol | Automatic (Torque Converter) | 13.16 kmpl
₹79.87 - 80.71 Lakhs**Ex-showroom price
Land Rover Range Rover Sport (HT Auto photo)
Land Rover Range Rover Sport
1997 cc | Petrol | Automatic (Torque Converter) | 9.26 kmpl
₹91.27 Lakhs - 2.19 Cr* *Ex-showroom price
Land Rover Range Rover (HT Auto photo)
Land Rover Range Rover
2996 cc | Petrol | Automatic (Torque Converter) | 9.43 kmpl
₹2.11 - 4.38 Cr**Ex-showroom price
Tata Tiago (HT Auto photo)
Tata Tiago
1199 cc | Petrol | Manual | 19.8 kmpl
₹4.7 - 7.05 Lakhs**Ex-showroom price
Tata Tiagoev (HT Auto photo)
UPCOMING
Tata Tiagoev
 
₹5 - 7 Lakhs* *Expected Price

The Treasury told the paper it did not comment on individual firms.

Separately, the Times reported that the pay of outgoing JLR chief Ralf Speth has risen 30% on last year to 4.44 million pounds ($5.8 million). That’s at the same time as the company increased its cost-cutting target to 2.5 billion pounds and cut thousands of jobs. His total earnings for the past four years came to 18 million pounds, it said.

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on
First Published Date: 17 Aug 2020, 08:45 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city