“Tens of Million” of dollars secured to keep luxury brands afloat
In this volatile economic environment, no auto manufacturer is safe from hard times, including Jaguar and Land Rover. According to an Automotive News/Reuters report, the two historic British car companies are facing a “cash crisis.” Parent company Tata Motors, the Indian auto manufacturer that recently purchased the luxury brands from Ford for $2.3 Billion, recently secured funding from the banks for “tens of millions” of dollars in aid. The news comes after Tata poured “hundreds of millions” of dollars into the struggling companies earlier this year.
It was thought such a move would be unlikely as the current squeeze in the credit market would make borrowing such sums of money impossible. According to the report, however, banks were more forthcoming after rumors surfaced that the British government may also borrow money to help keep the iconic nameplates of Jaguar and Land Rover afloat.
[Source Automotive News from Reuters]