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ShareMumbai: Tata Motors has laid off 2,000 Jaguar Land Rover employees and asked many to go on a sabbatical.
Ravi Kant, vice-president, Tata Motors, said if the situation does not improve there are chances of more shutdowns and further layoffs.
The company's employee strength is 15,000 currently. The company is also looking at low-cost sourcing from emerging markets, especially the BRIC nations.
Kant said 85-90% of the capital expenditure will continue to be on new product development. Also, Tata Motors has given an additional £1 billion cash to JLR for working capital needs. Tata Motors has already repaid $100-150 million of the $1 billion loan, which was rolled over till December 2010, Kant said.
The European Investment Bank (EIB) has sanctioned£340 million in April this year but it is waiting for the mandatory guarantee required from either the UK government or any private bank there in order to avail of the funds, company officials said.
They added that this will take care of their working capital requirements for the next 16-18 months.
With regards to the pension liability fund, Tata Motors has to pay £3 billion to the employees of JLR.
The current valuation is £3.2 billion as against the required amount that needs to be paid, which is £3 billion. Tata Motors has to conclude the payout by July 2010.
