Tata Motors is to inject Jaguar Land Rover with crucial funds in order to keep the company afloat, say new reports. A cash sum from Tata would give the government some further time to decide on whether (and indeed how) to proceed should they be underwriting the company.
The car manufacturer has asked the government for financial support (a payment is likely to help keep the company going) and it has been backed by unions who say that the car industry as a whole could well need more help.
The UK carmaking industry employs around 800,000 people, many of whom may feel their jobs are at risk at the moment. Perhaps the greatest risk comes from a factory going under – once one goes, others may fall and it’s very unlikely that they then start back up. In we really need to try and save the UK car industry, even at a cost to the tax payer in the short term.
Ultimately, if we do nothing at this stage, we risk being in a much weaker position when the economy eventually does recover, which it will. When? Who knows, but for the time being, the number of employees above is simply too high a figure for the government to ignore.