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A Jaguar spokesman has assured workers that an agreement to stop redundancies will be honoured, despite the head of parent company Tata warning of possible job cuts.

Ratan Tata said in an interview with Sky News that job cuts will be made unless the UK government can guarantee £500m in loans.

He added that the damage would be 'devastating' if ministers did not decide to help.

Speaking about the threat to the UK motor industry he said: "If funds are not available a company ...Read the full article

Dear Mr. TATA;

How about if you do not honour what you said (and you have said twice about not making people redundent at JLR) we all stop buying Tetley tea and anything else you own for that matter.....hows that Mr. TATA?

Thanks

North 

Ps; it is not up to the UK Gov. to keep bailing you out.....you knew the position when you took over the firms and you promised new cars etc and investment etc.....so get your hand in your pocket (as you said you would) and fulfil your promise and stop rattling on.

Autocar:

Ratan Tata said in an interview with Sky News that job cuts will be made unless the UK government can guarantee £500m in loans.

He added that the damage would be 'devastating' if ministers did not decide to help.

BLACKMAIL!

And so the gloves come off. All the deals on no compulsory redundancies are not worth the paper they were written on.

Reported in Indian financial press over last weekend that JLR is seeking 600 further white collar redundncies right now, of which half are to be management grade.

Add in that Tata have June as a deadline to repay up to $2.3bn bridging loan on JLR purchase, that the Tata Nano is 12 months late to market and the original factory was to produce 400,000 units a year which has been scaled back to around 60,000 units and that Moody's has downgraded Tata's credit rating to near junk grade last week and one sees that Mr Ratan Tata is holding a gun to UK taxpayer's head to extract funds to not just assist JLR but his wider, fast crumbling ponzi empire.

It is not reported here but JLR/Tata have just applied for 300 million euros from the European Investment Bank to ostensibly produce green cars. If successful the sum will have to be matched euro for euro by the UK Treasury, further draining UK taxpayer funds.

http://www.eib.org/projects/pipeline/2009/20090109.htm

This is getting way out of hand.

hehehe, I think Mr Eccelstone often pulls off tricks like this and he certainly gets his way when he does it.  I say hat's off to Mr Tata, I'd probably do the same myself.  Business is business and nice to see the kneejerk reaction from some on here. 

That contract was never worth the paper it was written on anyway, but the union leaders had to feel good about themselves didn't they.  It was in there that JLR could go back on it anytime they wanted if "certain circumstances" arose.

Madmax....you must be nuts, business does not have to be like that, it only like that if that is how you decide to run it; the choice is that of the owner.

Also Mr. F1 I think would be unhappy with your comments (I think so anyway); (Sir) Bernie E dipite what anyone says cares about F1; he likes the sport that is obvious and Bernie was a major driving froce in F1 and where it is today (no doubt).

TATA on the other hand simply is really stretching it.....personally as I have said, right now JLR has issues with staff numbers and sites, but if I was TATA, I would be bringing the Nano and the other thing that was reported on this site to the UK and instead of getting rid of workers, I would be building the TATA auto trade and havingt them tool up etc and make these new motors; I would have planned that in from the start and bought JLR on the strength of it

......as said it depends on how you do business....you are right there are no hard and fast rules (particularly) but then that shows the measure and character of the person......me I think his approach or rather how it would seem is disgusting; he made the promises when he took it over and announced them in public.......as said, if he goes back, I will not buy any of his other goods.

Ps; well said Mr. Horse..its getting way out of hand....

There never use to be so many cars (especially "premium"), how were they paid for? Oh yes the banks made it up by inflating property prices with hideous multiplication of salary loans, it has to end now, we need to stop putting off the inevitable.

T'was rather silly to come out with the promise to workers if Tata still needed to chase the UK government for cash for its 2Bn refinancing loan due in June. I had assumed this would have been sorted to be able to make such a guarantee.

Maybe with the laon having to come from Euroland, Jaguar misread the situation, thought they'd get the cash, and now its been made clear thay can't have as much as they wanted, so Mr Tata is having to come out with the odd threat.

Nothing any other carmaker across the world isn't doing to the governments of the countries is plants are based in though.

Or maybe someone forgot to tell Mr Tata about this union deal?

Orangewheels; you are right, GM as far as I know have not gone around promising things....they have made the situation clear as have others; no false promises and that is a big difference; they have made no secret of the situation; on that level they have dealt.

Mr. TATA should know better, he promised and thus it now comes down to his credibility; what is worst he is now saying that he did not see any of this coming?......if he does not do that he is then saying he did and went ahead anyway....either way its not good; surely he had a plan what to do......?? he had thought about the worst case?? he knows what other projects he is doing........

........maybe he has done JLR a favour....i.e. if his crediability starts to drop any further he will have to sell JLR as he would risk pulling them down.....maybe they will do a management buyout.....team up with LDV and square a circle and then they could give "Clan" a helping hand??

Mr Tata has not done anyone a favour - all parties seem to lose.  It gets me thinking about whether the Government are playing into Mr Tata's hands slightly more easily than seems credible.  Dare one suspect the dread hand of Lord Mandelson?  This is more complex than it looks and no mistake.  Perhaps Tata might end up with a very lean car company with a very strong range paid for by us - not so daft as he looks eh?

When are people going to differentiate between LOAN and Funding, all he is asking for is what the UK government (in line with almost every other EU country) promised , a portion  of the 2.3Bn government backed loans. there is no ask of donations, buyouts or similar, just a short term loan.

It doesnt actually cost the taxpayer anything as it not even us thats loaning anyone money, its the banks they bailed out, its that the government guarantees it, so as long as it gets paid back there is no issue.

It a lot clearer than some of the dodgy funding/nationalising of banks thats been going on for a start