
Pointing out that the government does not have an 8220;open cheque-book8221; for ailing private companies, UK business secretary Peter Mandelson has said that Indian conglomerate Tatas have the 8220;first responsibility8221; to ensure the survival of the luxury car maker Jaguar Land Rover.
8220;They JLR have owners who are well-resourced, who have the first responsibility for sustaining the companies that they own in existence and in production for the future,8221; Mandelson told British broadcaster Sky News. According to him, it is too early to judge whether state help would be needed at Jaguar Land Rover, which employs around 15,000 in the UK.
In a report on the broadcaster8217;s website published today, Mandelson was quoted as saying 8220;the car manufacturer is in discussions with the government about a state bail-out8221;. Earlier this year, Tatas had acquired Jaguar Land Rover from American car maker Ford for about 1.6 billion pounds. 8220;I8217;m talking to the car manufacturers. We are analysing very carefully what is going on in the sector and we will make good judgements in good time.
8220;We are looking at the sector as a whole. I have had discussions with the owners and management of Jaguar Land Rover in particular, because they argue that they are under particular strain,8221; Mandelson said. Mandelson also noted that the impact the company8217;s failure would have on jobs in the supply chain as well as its own workforce would be taken into account. The company announced last month that it was laying off around 850 IT and engineering staff in response to severe global car market conditions, the report added.