Tata Denies Report of Possible JLR Sale

India’s Tata Motors Ltd. says it is not considering selling part of its struggling Jaguar Land Rover unit, countering a Bloomberg News report earlier today.

"There is no truth to the rumors” that Tata is looking to divest its stake in JLR, the Indian company tells Reuters.

Bloomberg cites unnamed sources who say Tata is considering options that range from selling a minority stake in JLR to forming a technical alliance to cut the cost of vehicle development. The discussions are characterized as being in the early stages with potential advisors, and that they may not result in any deal.

Tata, which acquired JLR in 2008, previously has considered spinning off the luxury unit. The U.K.-based company has struggled in recent years due to slumping demand for diesel-powered vehicles, worries about the impact of the U.K. leaving the European Union and the impact of the U.S.-China trade war.

In December, JLR announced plans to slash annual costs by £2.5 billion ($1.3 billion) in 18 months. Last month the unit reported a 6% drop in sales and an operating loss of $206 million.