Mumbai, Aug 11 (Inditop.com) Auto major Tata Motors Tuesday said it has secured funding from commercial banks for its luxury unit Jaguar-Land Rover and no longer needs financial assistance from the British government.
“We have been in discussions with commercial banks for Jaguar-Land Rover (JLR) funding facilities, many of which have been successfully concluded in the last few months and the balance is expected to be completed in coming weeks,” Tata Motors said a statement.
JLR, which was acquired by Tata Motors from Ford Motor for $2.3 billion in March 2008, has been battling for survival as demand for luxury cars plummeted in the wake of the global slowdown.
JLR and Tata were in talks with the British government for a bailout package.
“We also expect that the long-term loan from the European Investment Bank (EIB) of 340 million pounds ($560 million), sanctioned to Jaguar-Land Rover, can also be successfully secured in coming weeks through appropriate commercial arrangements,” said the statement.
Tata Motors is India’s largest commercial vehicle maker, with consolidated revenues of Rs.70,938.85 crore ($14 billion) in 2008-09.
“These arrangements have been and are expected to be concluded without necessitating guarantees from the UK government, for which discussions had been ongoing for some time,” the statement added.
