"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "

Chinese premier Wen Jiabao 12th March 2009

""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."

Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Monday, December 22, 2008

Tata Blackmails Government for a handout

The BBC report that the Finacial Times are reporting that Tata Motors, the owner of Jaguar Land Rover, is to inject "tens of millions" of pounds into their UK business.

Tata acquired Jaguar and Land Rover from Ford Motors for an all-cash deal of US$2.3 billion (£1.15 Bn at the then rate of exchange £$1= US$2) on May 2nd 2008 (Less than Ford paid for Jaguar alone). Shortly after (20/9) the The Indian News reported that the Tata board "has reviewed its fund raising plan " for the acquisition after considering " the current situation of the capital market and price changes in the stock market since May 2008". Tata had revenues globally of US$62.5Bn in the year to March - late last week, Tata announced a sponsorship deal with the Ferrari Formula One team.

According to the new financing plan, the board had decided to keep the share capital as low as possible. This was shortly after the announcement (31/7) of a joint venture with French bank Credit Agricole, that the Italian auto giant Fiat would be handling the financing of all new Jaguars and Land Rovers purchased across Europe. Fiat takes over financing for Jaguar/Land Rover in Europe

However if you read the Times today - Gordon Brown puts millions on table to save car maker Jaguar Land Rover

"A state package worth hundreds of millions of pounds will be negotiated in the new year to save a firm claimed by its Indian owner to be of key strategic importance to Britain’s economy."

Apparently Professor Lord Kumar Bhattacharyya has received many international awards including the Padma Bhusan from the President of India for services to science, technology and industry and is an adviser to Tata Motors (and personal friend of the great patriarch Ratan Tata) and has been involved in talks with the UK Government.

This year his alma mater, IIT Kharagpur awarded him an Honorary Doctorate of Sciences, the institution's highest accolade with previous recipients including Mother Theresa and Ratan Tata.

The Independent has a different tale from Sarah Arnott - The Indian giant with a begging bowl - JLR has laid off 850 agency staff , will thin out 600 posts with redundancy ,cut production at Castle Bromwich and Solihull in the West Midlands, and at Halewood on Merseyside.

Tata Motors, the Indian arm of the car business, lorry sales have fallen by 50% and the high-profile scheme to build the world's cheapest car , the nano (see pic) has been hit by scandal and delay.

Tata Steel, is seeing steel prices slumping it has lost 500 UK jobs at Corus, which cost them £6.2bn last year, and wants state aid from both the Dutch and UK governments.

Would we be right in thinking that Mr Tata has bitten off more than he can chew and now expects the UK tax payer to fund his extravagance ? Gordon is fast becoming a serial bailer - he should take heed of the future demands ....

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