Tata will need to rely on private financing to help Jaguar Land Rover recover from the impact of the coronavirus after bailout talks with the UK government ended
According to the Financial Times, discussions came to a halt after it was determined that the UK carmaker wasn't eligible for emergency support from the taxpayer.
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One sticking point in discussions that the paper reported was the need for Jaguar Land Rover to accelerate its electrification development to meet carbon emissions target, a move that would require the company to wipe out the diesel cars that will make up most of its sales.
Project Birch, a scheme set out to aid companies deemed as being strategically important, but an FT source said that the scheme became unfeasible for Jaguar Land Rover parent Tata due to lending restrictions.
"Tata Steel remains in ongoing and constructive talks with the UK Government on areas of potential support," Tata said in emailed statement. The UK treasury meanwhile won't comment on individual cases.
Former Renault boss Thierry Bollore will take over as Jaguar Land Rover's CEO on September 10, replacing Ralf Speth who had served in the role for the last decade and will move into the role of non-executive chairman.
Jaguar Land Rover is currently embarking on a £2.5 billion savings programme after posting a pre-tax loss of £413 million for the quarter ending in June.