Click to play videoNew Delhi: Tata-owned Jaguar Land Rover is reportedly in secret talks with the British government for a one billion-pound loan.
British daily The Sunday Times reported that British Prime Minister Gordon Brown is studying the request and could reply in the next fortnight.
Apparently JLR Chief Executive David Smith has made a direct plea to the government for cash. This comes just just nine months after Tata bought Jaguar-Land Rover.
Tata wants the loan to help tide over the next 24 months, a period where the car industry is expected to come under a lot of financial pressure due to the global meltdown.
Tata paid $2.3 billion for JLR and financed the acquisition with a $3 billion bridging loan.
At the same time, the Society of Motor Manufacturers and Traders, which is representing the interests of the wider British industry, is seeking a state aid of 2-3 billion pounds.
Component suppliers to the automotive industry are also in difficulty, many of them already facing issues with credit insurance.
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