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London, April 18 (PTI): The Tatas-owned luxury car maker Jaguar Land Rover (JLR) is reviewing earlier plans to close one of its UK plants because of a recent revival in sales and is also likely to seek the UK government’s assistance to launch models, The Sunday Times has said.
The UK-based newspaper has reported that JLR is “weighing a dramatic about-face on plans to close one of its three UK production plants”.
Quoting sources, it said a recent revival in sales coupled with the arrival of a new management team “has led to a review of the closure plan”. In September, the company had said it planned to close one of its factories. “Its plant at Halewood on Mersyside was safe, with the axe to fall on one of the Midlands sites — Castle Bromwich or Solihull. An announcement on which was to close was expected this summer,” the report stated.
The Tatas have hired CarlPeter Forster, former boss of General Motors in Europe, and Ralf Speth, previously a BMW executive, to manage JLR operations.
The Sunday Times said Forster and Speth were now considering a business plan that would see the marques launch models and increase production.
The plan could require keeping all three plants open.
“JLR is likely to seek government assistance tied to the launch of models,” it noted.
Pointing out that the request could prove tricky, the newspaper said, “Two years ago the Tatas asked the government for a £1-billion loan guarantee to tide itself over a slump in sales caused by the credit crisis.
“Talks dragged on for months until the Tatas finally announced it had been able to secure the necessary finance from other sources.”
The plant closure plan was announced not long after the talks with government broke down and JLR embarked on a cost-cutting drive.
According to the report, the Tatas and senior JLR management have been irritated by the government assistance provided to General Motors.
British business secretary Lord Mandelson recently agreed to provide a £300 million loan guarantee to help safeguard jobs at the UK plants of Vauxhall — GM’s UK division.
JLR has about 14,000 employees in the UK.
Since the start of 2010, sales at the company have improved. Land Rover sold over 67 per cent more vehicles in the UK last month than in March 2009, while global sales last month rose 43 per cent, it added.





