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Tata to inject "tens of millions" into Jaguar Land Rover.

 

 

 

 

Tata Motors is to put "tens of millions of pounds" into Jaguar Land Rover.

Debasis Ray, head of corporate comunications for Tata, which owns JLR, did not say how much money it would be injecting, according to the BBC website.

Last week the Birmingham Post reported ministers wanted the chairman of the group, Ratan Tata, to invest some of his own wealth into the struggling firm.

It is not known whether any of the cash injection is from Tata's personal fortune.

Business secretary Lord Mandelson confirmed he has been in talks with JLR about providing state aid.

The Government is willing to help the business with loans or loan Guarantees, so it can borrow from banks, but only if it can convince ministers it has made the most of its own resources.

The company has shown signs it is making an effort to curb spending by cancelling the G4 Challenge to focus more on product lines in 2009.

Land Rover managing director Phil Popham is quoted on iAfrica.com saying: "Given the severity of the global economic downturn and trading conditions, we need to make some tough decisions and that means prioritizing our budgets on new product launches."

The event is a competition in aid of the Red Cross.

Meanwhile the Financial Times reports Tata has not helped its case for taxpayer support after announcing it was sponsoring the Ferrari Formula One team.

 

 



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