Begin typing your search above and press return to search.
Tata Won't Sell Jaguar Landrover, Open To Adding Partners
By: Tupaki Desk | 17 Oct 2019 2:26 AM GMT
Tata Sons Chairman Natarajan Chandrasekaran said there was no provision to sell the Jaguar Landrover under Tata Sons, but the company was looking for strategic partners. The automobile industry is a key business for our company groups,
In 2008, Tata Motors purchased the JaguarXE sedan and Landrover Discovery SUV from Ford Motor. As long as their sales continue to grow in countries like Russia and China, JLR waned to such an extent that it's had to launch a 2.5 billion-pound ($3.2 billion) savings program and slash thousands of jobs worldwide.
Losses at Tata's automotive business have mounted with a slump in India's car market, as well as trouble overseas, including an economic slowdown in China, where auto sales are sliding, and uncertainty over Brexit.
Chandrasekaran said China sales have "collapsed" with a 50 percent drop last year, though 2019 is showing some improvement. Some problems were self-inflicted, including vehicle quality and dealer issues, he said, noting that the auto industry is "going through difficult times."
While the company would "always look for partnerships," it doesn't want deals where "we just sell a stake and we have no say," Chandrasekaran said Tuesday in New York. "We are not financial investors, Tata Group, we run companies.
JLR's capital expenditure has outpaced operating cash flow over the past two years, but Chandrasekaran said his target is to reverse that trend by 2021. "Once we do that, then people will believe what I'm saying: I'm not running away."
In 2008, Tata Motors purchased the JaguarXE sedan and Landrover Discovery SUV from Ford Motor. As long as their sales continue to grow in countries like Russia and China, JLR waned to such an extent that it's had to launch a 2.5 billion-pound ($3.2 billion) savings program and slash thousands of jobs worldwide.
Losses at Tata's automotive business have mounted with a slump in India's car market, as well as trouble overseas, including an economic slowdown in China, where auto sales are sliding, and uncertainty over Brexit.
Chandrasekaran said China sales have "collapsed" with a 50 percent drop last year, though 2019 is showing some improvement. Some problems were self-inflicted, including vehicle quality and dealer issues, he said, noting that the auto industry is "going through difficult times."
While the company would "always look for partnerships," it doesn't want deals where "we just sell a stake and we have no say," Chandrasekaran said Tuesday in New York. "We are not financial investors, Tata Group, we run companies.
JLR's capital expenditure has outpaced operating cash flow over the past two years, but Chandrasekaran said his target is to reverse that trend by 2021. "Once we do that, then people will believe what I'm saying: I'm not running away."
