Tata Motors denies talks with UK Govt for JLR

Tata Motors Ltd. denied reports that it was in talks with the U.K. government on assistance for Jaguar and Land Rover (JLR) luxury units it bought from Ford Motor last year. The struggling British luxury car maker said that it did not want a government bailout, but did want credit flowing again either from direct lending or state-backed loans. "We are clearly in very difficult times, in difficult trading conditions," CEO David Smith told a leading British news channel. "Unfortunately, what we've got now is a situation where consumers aren't spending and consumers aren't lending, so it's a double whammy. Somebody needs to put oil back into the engine in my view and really the only people who can do that are the government," Smith said. UK's Business Secretary, Peter Mandelson said earlier today that he has held discussions with Tata Motors Chairman Ratan Tata on JLR. The UK government is in close contact with Tata Motors, he added. JLR has eliminated 450 jobs and is in discussions with union leaders about more cost cuts, as the global economic and financial crisis damps demand for luxury vehicles. "The British government will see how we can help Jaguar Land Rover bring about the financial restructuring it’s seeking," Mandelson said. The Tata group is already taking steps that are necessary in this regard, he said. JLR's UK sales fell sharply last month, as consumers refrained from big purchases. In December, sales at Land Rover fell 45% to 1,292 and sales at Jaguar decreased 9.4% to 924 vehicles. In the US, Jaguar sales dropped 34% and Land Rover sales slumped 46%.