"The government stands ready to help companies in the current difficult economic circumstances but does not have an open cheque book. The government has been in regular contact with Tata over Jaguar,” an UK representative was quoted as saying by Reuters.
What's interesting is that Jaguar Land Rover “stepped into” the global recession in October when it announced the first cost-cutting measure of the year. But more importantly, it denied every single rumor claiming that the UK carmaker is pressured by the financial crisis, explaining that firing 198 employees is just a part of its development plans.
"It is aimed at achieving greater efficiencies in the business. It is not a reaction to the economic slowdown or falling sales. Despite the downturn, we still expect this year to be the second most successful year in Land Rover's history,” Don Hume, director of corporate affairs, said in October.
However, the company did not deny that it was afraid of the recession, pointing that the crisis would have a strong impact over the JLR sales, particularly in the United Kingdom. "The economic environment is getting more challenging by the day and I do believe that, unless we introduce further measures to reignite the UK economy, there is significant risk,” Jaguar Land Rover CEO David Smith said at that time.
Although it has provided support to the British carmaker, Tata Motors still lobbies for a loan package from the UK government that could help JLR restore its financial status.
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