Tech & Biz

Ratan Tata: Nano CEO Warns of 15,000 Jaguar Land Rover Layoffs

by Tina Kells | March 30, 2009 at 11:51 am

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Tata Group Chariman Ratan Tata is warning that it may need to layoff 15,000 Jaguar Land Rover workers if the British government doesn't guarantee million of pounds in loans taken out by the high end automaker. The India based Tata Group took bought Jaguar Land Rover in 2008 for $2.3 billion.

Last week the Tata Group unveiled "the World's cheapest car," the Tata Nano, to the world. the Tata Nano will retail for less than $2500 and is the current jewel in the Tata Group's crown. This is a stark contrast to the high priced vehicles produced by struggling Tata Group subsidiary Jaguar Land Rover.

The 15,000 forewarned of layoffs at Jaguar Land Rover come on the feels of 450 previous job losses at the company.

In an interview to Sky News, Ratan Tata said, "Job cuts will be made unless the government can guarantee 500 million pounds in loans to the company".

Quoting Tata, the report published online said Jaguar was in need of urgent help or the company would face "devastating" results.

He said the firm needed a multi-million pound loan guarantee otherwise "its 15,000 UK workforce would be culled".

"If funds are not available a company will not be able to run. So layoffs will take place, redundancies will take place, as has already happened in the UK," Ratan Tata told Sky News.