The Tatas have agreed to give a cash boost worth ‘tens of millions’ of pounds to Jaguar Land Rover (JLR) to prevent an immediate crisis. The company’s decision and the readiness of its banks to supply cash are thought to have come in light of an expected bailout by the UK government in the coming days. UK Prime Minister Gordon Brown and the chancellor of exchequer Alistair Darling are reported to have already privately agreed that short-term assistance for JLR was ‘almost certainly necessary’.
Brown had said last week that though the government wanted to help car companies suffering due to the economic slowdown, the main responsibility lay with the carmakers themselves. Sources in Britain’s department for business, enterprise and regulatory reform told the media that the government had been in regular contact with Tata over Jaguar.