Car manufacturers everywhere are suffering under the double whammy of the global credit crisis and stalled sales. It comes as no surprise then that luxury marques are also feeling the brunt of the economic storm. British manufacturers Jaguar and Land Rover, recently acquired by Tata, have now joined the ranks of those in desperate need of financial aid in order to keep the wheels turning.
Tata is seeking ??1 billion (AUD$2.4 billion) in loans from the British government and is expecting a decision from Prime Minister Gordon Brown in the near future.
A spokesperson for Jaguar and Land Rover outlined the current situation:
"The automotive industry is facing unprecedented trading conditions as a direct fall out of the banking crisis and turbulence in financial markets and we are of course keeping government appraised of the impact on our business."
Some may wonder at Tata going cap in hand to the British government looking for help, after having only just put down USD$2.3 billion (AUD$3.8 billion) on acquiring the brands in June. Isn't that a bit cheeky? Of course, few, including Tata, could have predicted just how bad things would get.
With most major markets now stumbling into recession, auto manufacturers face a torrid couple of years ahead. What the future now holds for Jaguar and Land Rover looks decidedly uncertain. Let us know what you think: should the British government lend a hand or should Tata be left to carry the consequence of its decision to purchase these companies?