Tata set to pump 'millions' into Jaguar

Tata set to pump 'millions' into JaguarTata Motors Ltd would inject "tens of millions" of pounds into Jaguar Land Rover according to reports. The move is aimed to mitigate the impact of global slowdown. Tata bought the luxury carmaker JLR earlier this year for $2.3 billion from Ford Motor Co.

Almost entire Automobile sector is facing low demand problem leading to employ cost cutting measures including significant production cut and retrenchments. Tata's move to inject money in Jaguar Land Rover would prevent an immediate cash flow crisis being faced by company following economic slowdown.

Meanwhile, UK government is also considering package to automobile sector but it would take final decision on the package after studying its impact on other sectors which are also facing liquidity crunch. A spokesman for Britain's Department for Business said, "The government stands ready to help companies in the current difficult economic circumstances but does not have an open cheque book." The UK government has already taken many steps to help companies by nationalization and taking sakes in various banks.

Government is in touch with Tata on the proposed package issue and British Prime Minister Gordon Brown, Chancellor (finance minister) Alastair Darling and Business Secretary Peter Mandelson are agree to provide relief package to the company as per reports of Financial Times.

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