Oct 9, 2018
Tata Motors: wheelspin
Like a Land Rover in deep mud, Tata Motors is struggling for traction. The stalled complex is part of Tata's Jaguar Land Rover division, which contributes 80 per cent of the group's operating profits. Credit rating agency Fitch had already placed Tata Motor on a negative outlook on worries about Brexit-related supply chain disruptions hurting profits. Tata Motors needs more investment to ensure JLR keeps pace with new automotive trends, such as electric vehicles. In order to free up UK operations for the new generation of electric vehicles, Tata will shift production of the Land Rover Discovery to cheaper Slovakia- crucially within the EU. An increase of capital expenditure at JLR should mean positive free cash flow at Tata disappears over the next two years.
Make a complaint about Jaguar or Land Rover by viewing their customer service contacts.