The chairman of Tata Motors says the Indian automaker remains committed to Jaguar Land Rover despite recent reports that it was looking to sell the company.
According to The Times, in a private letter sent to UK Prime Minister Theresa May, Tata’s Natarajan Chandrasekaran said that investments in JLR will continue well into the future. Soon after, Tata published a statement reiterating its commitment to Jaguar Land Rover despite the Brexit.
“I would like to clarify that we remain committed to the long-term growth and success of JLR,” Chandrasekaran’s statement read.
“JLR will continue to face global headwinds being experienced by the auto industry, and to address them, the management is taking the right steps to drive operational excellence, whilst continuing to invest in innovative products and technology to stay competitive globally.
“There is no truth to the rumors that Tata Motors is looking to divest our stake in JLR or discontinue the Jaguar brand.”
Concerns about the future of Jaguar Land Rover have been raised in recent months as the automaker has struggled with falling demand in China, a decline in diesel sales, and concerns regarding Britain’s impending exit from the European Union. Additionally, trade tensions between the U.S. and China have contributed to significant losses within the company.
In a bid to restore JLR’s health, Tata Motors recently drew up two plans to help the company. The first, Project Change, will focus on cost reductions of $1.26 billion over the coming 18 months. The second, Project Accelerate, is longer-term and expected to reduce the automaker’s range of models.