INDIA's Tata Motors has dismissed the speculation that it may sell a stake in Jaguar Land Rover and said that the Coventry-based car maker is a 'key pillar' of the group.
Recent reports said that Tata had ended talks about government-backed bailouts for JLR. While responding to reports in the Indian media, Tata Motors said that it has 'no such intent'.
"Unconfirmed and unsubstantiated reports have been published by some media alleging that Tata Motors may sell a stake in JLR. JLR is and remains a key pillar of Tata Motors and the wider Tata Group," said the company in a statement.
"Recent results shows that we are maintaining solid liquidity despite Covid-19 and expect to be cash positive from the second quarter onwards. JLR remains strong as it transitions to new electrified, autonomous and connected technologies”.
JLR sunk to a £1.1 billion loss over the first quarter when posted results last month after sales fell more than 40 per cent to £2.9 billion.
According to reports the car maker sought aid under 'Project Birch', the government scheme to support structurally important companies.
Bur the government decided the car maker would have to rely on funding from its owner or commercial sources, reported The Telegraph.
Reports said that the funding under the project comes with tough conditions such as controls on executive pay, dividends and strict decarbonisation requirements.
The British car maker is moving towards building more electric vehicles but the pandemic has seen it slow down investment and plans for the green vehicles to bolster the balance sheet.
The company is working with BMW on electric drive trains and internal combustion engines. Reports said this partnership could be extended to sharing vehicle platforms.
