Tata Motors Sans UK Govt's Help

Tata Motors have declared that it no longer needs the UK government's aid to raise funds either for its short-term or long-term loans. The Indian car company finally ended the 11-month-long saga of tortuous negotiations with the UK government to secure the future of Jaguar Land Rover.

Tata Motors has been reported to have finalized its short-term funding facilities through commercial banks. It has also been revealed that the Indian car major is close to negotiating commercial arrangements for funding and guarantees for the approved £340-million loan ($566 million) from the European Investment Bank for long-term funding.

"These arrangements have been and are expected to be concluded without necessitating guarantees from the UK government," the statement said.

David Smith, CEO of Jaguar Land Rover, said: "We are hopeful of soon being able to access the approved £340-million European Investment Bank loan in support of our future product and environmental technology development, also through commercial means. This has always been our desired route and it clearly demonstrates recognition of the inherent strength in our business and faith in our future business plans."

Tata Motors acquired Jaguar Land Rover for $2.3 billion from Ford Motors, and while most of the loans it took for the acquisition have been refinanced, it is believed that some £200 million ($333 million) is still due next July.

Source: http://www.carazoo.com/article/1606200901/Interesting-Facts-on-the-Historical-Tour-of-Ford-Motors