Talks with UK govt on JLR lending still on: Tata Motors

Tata Motors, which had bought UK-based Jaguar Land Rover (JLR) last year for $2.3 billion, today said discussion with the British government over short-term lending was still on.

"Discussion is going on with the British government. It has not yet concluded," Tata Motors Vice-Chairman Ravi Kant told reporters here.

Tata Motors may not be happy with the reported 175 million pounds guarantee offered by the UK government to the company, industry sources said. Besides, the government has also reportedly sought one representation on the board.

Declining to comment further on the matter, Kant said, "Wait for next month when we will be coming out with the consolidated results."

Ever since Tatas bought JLR, the luxury UK auto brands, they have been facing plummeting sales owing to the global financial crisis.

The company has already pumped in $1 billion in JLR, its Chief Financial Officer C Ramakrishnan said.

Meanwhile, Tata Motors has roped in two consultants, including KPMG, to devise ways for improving the overall performance of JLR.

"They have given us the proposals and we are working on it. Following that, teams have been formed and we do hope to get some major gains as we go along," Kant said.