GOVERNMENT talks over a potential lifeline for Jaguar Land Rover have ended without a deal.
Tata Motors, the owner of JLR, reacted to the end of discussions today (August 17), with a denial it is looking to sell its stake in the car manufacturer.
Rescue talks between the government and Tata fell apart on Friday (August 14), with ministers instead pushing JLR’s owner to find private financing, as revenues are hammered by coronavirus.
The Financial Times reported emergency loan discussions disintegrated as JLR’s Indian owner Tata is ineligible for government money.
Strict conditions over loans made proposals ‘infeasible’ for Tata, it is claimed.
Chancellor Rishi Sunak has established so-called ‘Project Birch’ to offer loans to strategic Briitsh companies. The Treasury suggested there could be tax payer support for crucial businesses.
Following the block on government cash for Tata, the company stated: “Unconfirmed and unsubstantiated reports have been published by some media alleging that Tata Motors may sell its stake in Jaguar Land Rover (JLR).
“Tata Motors categorically denies and dismisses any such intent. Jaguar Land Rover is and remains a key pillar of Tata Motors and the wider Tata Group.
“We recently announced our results for Q1 and have indicated that we are maintaining solid liquidity despite the Covid-19 pandemic and expect to be cash positive from Q2 onwards.
“Jaguar Land Rover business remains strong as it transitions to new electrified, autonomous and connected technologies to support its Destination Zero ambition.”
