Jaguar and Land Rover owner Tata Motors has denied speculation that it is considering selling off its two British car manufacturers to the PSA Group.
Last week, a report out of the UK asserted that PSA and Tata Motors were exploring cost savings through a tie-up and indicated that Jaguar Land Rover could be sold to PSA imminently. However, both companies have denied the report, Auto News reports.
“We are generating the cash flow necessary to pay for our future. If an opportunity comes, like Opel-Vauxhall, we will consider it,” PSA said, adding that it is not in any hurry for “any acquisition and can stand alone.”
“As a matter of policy, we do not comment on media speculation. But we can confirm there is no truth to these rumors,” a statement from Tata read.
PSA chief executive Carlos Tavares has been open about his desire to improve the company’s footprint outside of Europe and has reportedly considered deals with Fiat Chrysler Automobiles, General Motors, and Jaguar Land Rover. The search for a new partner comes after the car manufacturer purchased Opel/Vauxhall from General Motors in 2017 and quickly turned it around and made it profitable.
Jaguar Land Rover has been under the ownership of Tata Motors since 2008, but last year, falling sales in China, issues regarding Britain’s exit from the European Union and the slow shift away from petrol and diesel-powered vehicles resulted in severe losses. The British company has previously stated that it needs to raise $1 billion within 14 months to replace maturing bonds and fund investment into electric vehicles.