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Tata to close UK Jaguar auto plant: Report

Last Updated: Thursday, September 24, 2009 - 15:59

London: Tata Motors is set to close a Jaguar auto plant in central England, Sky News said on Thursday.

Last month, Tata said it no longer needed UK guarantees on loans for its Jaguar Land Rover (JLR) unit as it had secured private funding and was close to finding a commercial backer for a European Investment Bank (EIB) loan.

Home-grown auto major Tata Motors had on June 2, 2008 completed the JLR acquisition from US automobile giant Ford Motor Company for a net consideration of USD 2.3 billion.

The global meltdown and high fuel prices, especially after September 2008 which saw vehicle financing and demand drying up, impacted the auto industry worldwide.

The two British brands were profit making in 2007 and in the first half of 2008, Tata said.

However, in the first 10 months post-acquisition ending March 31, 2009, JLR`s sales volumes fell by 32 percent over the same period in previous year resulting in a net loss before tax of 281 million pound.

Bureau Report

First Published: Thursday, September 24, 2009 - 15:59
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