Business Daily from THE HINDU group of publications
Friday, Mar 13, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Friday, Mar 13, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Markets
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Stocks Corporate - Outlook
Our Bureau Mumbai, March 12 The Tata Motors stock gained 6.8 per cent on Wednesday, after a UK government grant to Jaguar Land Rover- a subsidiary of the auto major; however, the stock’s response appears to be an over-reaction. The company will receive a government grant of up to £27 million, to help it develop a new “fuel efficient – green” Land Rover vehicle. The £27-million package is separate from the state aid package to help automakers weather the recession. It has no implications on the debt outstanding of Tata Motors, used to fund this acquisition. It also needs to be noted that the grant will contribute only a part toward the £400-million cost of the green vehicle model, which is yet to be developed. It is hoped that the new Land Rover, which is expected to be rolled out in 2011, will boost the ailing auto sector in the United Kingdom. The announcement came as Ministers and motor industry representatives of UK met in London to discuss the £2.3- billion loan guarantee plan for Jaguar Land Rover, announced in January. However, this plan is yet to receive approval. Tata Motors, which is currently facing a funds crunch due to the domestic commercial vehicle slowdown and the JLR acquisition, had sought a £1-billion infusion from the British Government last month. Consensus on this bailout plan is yet to be reached. More Stories on : Stocks | Outlook | Tata Motors Ltd
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