Tata Would Consider a Partner for JLR Unit

The head of the Indian conglomerate that owns Jaguar Land Rover Ltd. tells Bloomberg News that he won’t sell the unit but is will to consider partnering the business with another carmaker.

Tata Sons Ltd. Chairman Natarajan Chandrasekaran emphasizes that JLR is a core asset for the company’s Tata Motors unit and not for outright sale.

JLR quickly became a money machine for Tata after it was acquired from Ford Motor Co. in 2008. But now the unit is being buffeted by slumping sales in major markets, led by a 50% drop in demand in China. The company also faces the uncertain financial impact on its British plants of the U.K.’s impending exit from the European Union at the end of October.

Now JLR is trying to cut costs by £2.5 billion ($3.2 billion) in 18 months. Tata Motors also has written down its investment in the company by £3.1 billion ($4 billion).

Analysts have suggested that Tata sell a stake in JLR to BMW AG. Chandrasekaran says he would consider such a partnership, but not if it would require Tata to relinquish an active role in the company.