After $17.4 billion bailout package for US auto-giants GM, Chrysler, now another bailout package on the way for Jaguar Land Rover.
Tata bought British-based luxury car maker JLR earlier this week. At that time itself JLR was in poor financial health. Now it has become worsen. British Business Secretary Lord Mandelson is under pressure to come up with a similar package for UK manufacturers like Washington did for US counterparts. But Lord Mandelson has added that the Govt. is not a charity for bailing out the ailing companies but surely can help to overcome present financial challenges.
According to the Financial Times, accountancy firm KPMG and investment bank NM Rothschild have been called in to advise the UK government on the Indian group's complex finances and to assess demands from the car sector.
Meanwhile Tata has agreed to inject "Tens of Millions" of pound into British car company to prevent present cash-crisis.
Story is still not over. On the other part of the World, Japan's biggest auto-maker Toyota has slashed its projection on the profit booking. Let's put it straight, Toyota warns about loss first ever in 70 years. Toyota has rock-solid track record of profit-booking even in hard time. But this auto-giant, who is fighting neck-to-neck with GM for biggest car-maker title of the world, is freezing all its expansion plans, suspending executive bonuses and reviewing its dividend payout. Still few months ago, the company had been expecting a eighth consecutive year of profit, is suffering from plunging vehicle sales not only in North America but also in China and India, which many had believed would prove immune to US economic slowdown.
All this events are only underscoring how grave the financial crisis is.
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