Should Jaguar be bailed-out????

skap7309

So i make that 100% of the British public saying no?

bo_drinker

jeepjunkie wrote: »

Makes my blood boil...

Great!!! Tax payers bail out a private company that makes cars for rich people!!!

Grrrrr!!!

Exactly. If they want bailing out the Indian Gov't should do it. We can't keep writing cheques. The product is obviously wrong if the product was right would they need bailing out ?? We shouldn't have sold the Mini to BMW, look at how many you see on the roads whether you like them or not. Drive through your town I bet you see over a dozen minis before you see a newish Jag............. It's not rocket science F F S. :mad:

Zagu

It's very sad that we could see the demise of Jaguar. They did make quality cars many years ago, but now just make re-bodied Mondeos, which are good, but not really up to the standard you'd hope for from a Jag.

I can see Tata pulling the plug, and I don't think that there should be public money invested, as no one knows how deep this is going to go, and saving a car company now might be a very bad move if there isn't the money there to save something really essential in a years time. I suspect that, even if it does disappear, someone in a few years time will splash out for the name, and make real quality cars again, hopefully with the environment in mind so they make really high quality eco cars, which is a market no one has filled, as yet.

I'll still be sad to see them go though. The XJR is one of the best cars I've ever driven. Let's hope that someone with enough vision can do to Jag what BMW did to the Mini, BUT not BMW, please God, not BMW.

Heyman_2

There is a real danger as has been alluded to here already that these bigger companies could have the government over a barrel in terms of their situation.

All this talk of 'coming begging to the tax-payer' is wide of the mark, the reality is that they can't wait to get their snouts in the tax-payers trough with a nice favourable loan deal!

As has already been said here, they've had no contingency for this situation so it's a case of 'give us some cash or we'll lay off loads of staff and make you look really bad'. Either way they win.

piggeh

Nice favourable loan deal, but if the conditions are set correctly then it could be a good deal for the country. ie ask Tata to guarantee future production stays in this country rather than take it to India. It would soon pay itself back a few times over through tax returns in future years (hopefully ).

Although I guess I'm biased...

mewbie_2

I'll take the opposite view then. Not sure why it was so important to bail out the failing banks, I am assuming that other fitter banks would / could have survived and picked up the slack. I think it likely that many city bankers are personal friends with MP's - peerages and greasing the wheels, etc. "If we go down, you're going down" sort of thing.

On the other hand - industry, making things, manual workers. Even "hard working families" to use the current favourite expression. Can't find a billion or two to help out? Really? Couldn't tide Woolies over for a while? Couldn't do anything to actually help real working people rather than a few city chums?

No. I don't buy it. Billions upon billions for corrupt, stupid failing bankers who brought the system to its knees. And nothing for ordinary people. It stinks.

bubblesmoney

rover was a losing concern for years, guess tata bought it for badge value. so if they made a bad business decision then they need to carry the can for it. free market after all.

how ever since they own corus as well since it is a major uk employer as well they might have some negtotiation advantage there do to the jobs and manufacturing sector being involved. from what i understand as to how the corus deal was financed. corus was bought as part of a uk owned subsidiary of tata rather than by the main tata company. reason being the debts and risks of buying a manufacturing company in uk with higher labour costs. i think they bought corus for badge value as well as they being 4th largest steel manufacturer (i think) they would have had better economies of scale outside uk with lower labour costs. so i feel badge value was a factor in the purchase rather than manufacturing costs. also read somewhere tatas were reconsidering future of corus as well as the EU rules regarding carbon offsetting etc made it uneconomical to manufacture steel in uk compared to elsewhere, so i read about some grumblings from tatas that they will have to reconsider in view of present eu policy on carbon etc and that this might be a reason to relocate??? but even if corus went bust the tatas could limit losses by going into administration etc as bought thru a uk registered company from what i read on corus. the losses couldnt be recouped from the parent company is what i gathered. i am not sure if the rover deal was structured like that as well, couldnt find any details about that even though i looked. so maybe thats why the uk govt might be considering a bailout in view of the wider manufacturing issues. it was foolish of any company (far less the tatas) to buy rover as it was a long term basket case anyway, anyone who bought it would have ended up the same way. if corus was structured to limit losses to uk subsidiary i am curious as to why rover purchase was not structured that way.
anyway the outlook for tatas isnt great in their car sectors and steel sectors, but dont have an idea about their other ventures and their profitability. the hotels sector was hit anyway after the mumbai massacre in the hotel owned by them. oil would have taken a hit after the slump in demand. guess their software consultancy business would have seen a slowdown as well unless they were in the bread and butter bits of software consultancy which i think they were in.

itsnever2lateisit?

Tata are probably doing ok with Tetley Tea:D

Airwolf1

If I went into debit at the bank, or went into negative equity, would the government bail me out? I think not and that is the answer. It is us who bail these companies out in the end, not the government.

Sorry to sound harsh, but it is a fact.

punkstoner

No. JLR should not be bailed out.
Its TATA's problem, it's the indians problem.

It sounds heartless, but if folk lose their job, thats life, lifes tough.

JLR workers on the factory floor are on much, much more money than your average factory worker/machine operator.

If this bail-out does go ahead, there will be a bucket of p155 waiting for the labour party canvassers at polling time....