Tata may need to pump up to US$1 billiion into Jaguar Land Rover to keep the show afloat. Having already forked out US$2.3 billion during the acquisition, Tata could be forced to spend further to ensure the British brands survive the current global economic meltdown.
It's a big ask, but a Tata spokesman recently explained the Indian company's view on the matter:
?We will do everything in our ability to resource all our operations. The company is spending whatever is required to the best of its abilities. A company has to run. We are doing everything to make the company run.?
While the prospect if injecting further money into Jaguar Land Rover may be an unwelcome one, the possibility of losing the brands outright, and its initial investment in acquiring them, is far less desirable for Tata.
Ford must be thanking its lucky starts right now having offloaded Jaguar and Land Rover earlier this year. Upon the completion of the buyout, Tata proceeded to merge the two companies into a single unit.
Despite the financial aid, it remains to be seen if Jaguar Land Rover can stay afloat long enough to return to profitability. Let's hope they can. Both Jaguar and Land Rover are showing promising signs of returning to form.