Tata Gives Jaguar Cash Infusion

Troubled automaker turns to its Indian owner to help with cash-flow crisis
By Jim O'Neill,  Newser User
Posted Dec 22, 2008 8:32 AM CST
New Land Rover Freelander vehicles are seen stockpiled outside the Jaguar and Land Rover factory in Halewood, Liverpool, England.   (AP Photo/Paul Thomas)
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(Newser) – The British government, considering a bailout of its own auto industry, got a little wiggle room after Tata, the Indian firm that owns Jaguar Land Rover, said it would make a major cash injection into the ailing automaker that employs more than 15,000 workers in Britain. The company said it would pour “tens of millions” into the company, reports the Financial Times.

The government is worried that support for the auto industry would open the floodgate to bailout pleas from other sectors, and is insisting it be seen as a lender of last resort only. Automakers in the UK say the US and European bailouts of their auto industries put UK companies at a competitive disadvantage.