Monday, August 17, 2020

Tata Motors Denies Intent Of Selling Stake In Jaguar Land Rover

Tata Motors has always been on the look for strategic partnerships in the auto industry and we've seen one such intent of the company when it announced that it would be working together with Volkswagen in India. However, that plan didn't quite pan out. The same is true for Jaguar Land Rover as well and Tata Motors has been looking for strategic partnerships too. However, there were reports doing the rounds claiming that Tata Motors was looking for a strategic partner for Jaguar Land Rover (JLR) after talks with the British government on a financial rescue package failed. The report in fact also said that the company was planning to sell its UK steel plant. However, the Indian auto manufacturer has completely denied these rumours or speculations in this matter wherein it mentioned that some unconfirmed and unsubstantiated reports were alleging that the brand may sell its stake in Jaguar Land Rover.

Tata Motors issued a statement saying, "Unconfirmed and unsubstantiated reports have been published by some media alleging that Tata Motors may sell 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. "

The company further mentioned, "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."

Tata Motors-owned British marque recorded a lost £1 billion in the first six months of this year. The COVID-19 pandemic has resulted in lower sales around the world. The group had approached the British government for seeking a financial package as part of the latter's efforts to assist local companies. However, the talks with the government failed because of the stiff conditions, asking the brand to develop more electric vehicles than diesel cars



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