It seems that the acquisition of JLR is taking more time and effort of Tata Motors than it was ever envisioned. Mr. Ratan Tata has admitted that buying Jaguar and Land Rover is proving heavier than he ever thought. The statement comes at a time when Tata is due to repay its loan amount of Rs 5,000 Crore ($ 1 billion) in June this year. This amount is a part of the Rs 10,000 Crore ($ 2 billion) to be repaid to the consortium of banks that helped in raising Rs 15,000 Crore ($ 3 billion). All the big hype surrounding the acquisition of Jaguar and Land Rover has vaporized into thin air and only the hard facts are left.
Sadly, Tata is struggling to raise the amount from its existing resources. As Tata has made huge investments to acquire JLR, selling it out will be very difficult. It will not get a buyer who will invest in a brand that is unmanageable. The previous owner of JLR, Ford Motors had brought it for $ 5 billion but was able to sell it off for only $ 2.3 billion. It was unable to recover more than half of its investment. Obviously, Tata is left with only one option of cleaning up its finances and also straightening up JLR in the face of the world.
The global economic meltdown has taken a heavy toll on Tatas’ vision of expansion into various fields. Hopefully, the company survives the tough times and again spread its charm across the globe with its scintillating car models.














