Tata-owned company Jaguar Land Rover will make further job cuts unless the British government offers aid, Ratan Tata, chairman of Tata Motors. The Indian automaker purchased the brands last year from Ford for USD $2.3 billion. Now, facing insurmountable financial difficulties, Jaguar Land Rover operations need £500 million in government loan guarantees.
“If funds are not available the company will not be able to run,” Tata said. “So layoffs will take place.”
Jaguar Land Rover employs 15,000 workers in the U.K. Since December, the company has eliminated 500 manufacturing and 850 temporary positions, and plans to cut an additional 150 at the end of April.
According to a government spokesperson, the brands will receive help from government ministers in finance discussions with British banks. But, “The primary responsibility for short-term financing or longer-term restructuring rests with the parent company,” the spokesperson said.