Tata pressed to end Jaguar talks standoff
Lord Mandelson, the business secretary, has urged Tata Motors to respond to a revised offer of government funding for Jaguar Land Rover in an effort to end a deadlock in talks over aid for the two lossmaking luxury car brands.
He made the call as the government, under growing criticism for being too slow to respond to the car industry’s crisis, prepares today to outline plans to make the north-east a hub for research and development of electric cars.
Lord Mandelson described Jaguar Land Rover as "a first-rate company with many strengths and a good future". However, he said, Tata needed to provide an answer to a new offer of financial support.
"Having been told there was great urgency, we have made proposals and offers and now we are waiting for a response," Lord Mandelson told Sky News. "If the situation is so urgent, I think Tata need to quicken the pace of their response."
Tata first turned to the government for emergency financing for Jaguar Land Rover late last year. It has since then pumped more than £1bn into the carmakers to cover their losses.
The Indian group, advised by Citigroup and Standard Chartered, is seeking a government guarantee for a £340m, a three-year European Investment Bank loan to cut its fleet’s emissions, plus guarantees for private bank loans worth nearly £500m. Tata has balked at conditions ministers were attaching to aid , including board representation at Jaguar Land Rover and operational control. However, the government has abandoned most of these.
Source: Financial Times
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