"After the acquisition, the Company will further strengthen the ongoing initiatives to improve operational efficiency such as productivity improvement, cost reduction, new product development etc., so as to improve market shares of the company and enhance brand value. Tata Motors is confident that Hispano should now emerge as an even stronger force in the Spanish as well as Global bus and coach markets," the Spanish company said in a release.
Hispano Carrocera is based in Zaragoza, Spain and owns two production plants, in Zaragoza and in Casablanca, Morocco. It has a production capacity of 2,000 units per year.
Tata Motors recently managed to secure private funding for Jaguar Land Rover, the British division that brought a significant drop in the company's revenues. The British government initially considered the possibility to provide funding to JLR but the newly-secured aid is believed to cover the company's short-term needs.
“The fact that the banks and commercial capital markets are meeting JLR's funding is a clear sign of confidence in the company, its products and the automotive sector.( This additional funding will allow JLR to invest in future models and successfully launch the new XJ saloon on schedule and updated Land Rover models later this year,” said Peter Mandelson, UK Business Secretary.
"The Government had offered bridging finance from the Automotive Assistance Programme if necessary. We understand the Tata group will now be successful in resolving longer term financial needs but we are willing to help again if necessary. This is a good and encouraging outcome for JLR, its workforce and its supply chain," added Mandelson.
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