Professor Lord Kumar Bhattacharyya, head of the Warwick Manufacturing Group at Warwick University says that the Jaguar Land Rover’s survival is crucial for Britain’s economy. According to the academic of Indian-origin Britain's main manufacturing region could become an industrial wasteland if carmakers Jaguar Land Rover is allowed to fail in the current economic climate.

 

It is to be mentioned here that the negotiations between the British Government and JLR owner Tata Motors for a loan were "going well." But Professor Bhattacharyya gave a stark warning over the cost of failure as directly and indirectly there are 600,000 employees dependent on JLR. If the company was allowed to fail there would be meltdown in the West Midlands, he added.



Bhattacharya's warning follows a sharp downturn in demand for new cars in Britain - a decline that the auto industry, led by JLR, wants addressed through a government bailout.

He hit out at critics of a government bailout, saying JLR is competitive and is setting new green standards among luxury cars. He pointed out that US; Sweden, Spain and France are all offering "massive subsidies" to their car industries.