Is TATA motors about to go bust?

Tstag · 26th March 2009, 04:47

See: Liquidity problems delay vendor payments: Tata Motors - Corporate News - livemint.com

Not a good sign. They are currently pleading with the UK government for a loan guarantee to refinance the bridging loan they took out on JLR. But the Brits are quite tough on anything that looks remotely like state aid. So I doubt they will get it. Why did TATA buy JLR if they couldn't afford it?

vasudeva · 26th March 2009, 10:59

Also read this specifically regarding Jaguar Land Rover:

IHS Global Insight // Same-Day Analysis

zaks · 26th March 2009, 11:31

Quote:

Originally Posted by Tstag

So I doubt they will get it. Why did TATA buy JLR if they couldn't afford it?

Their business sense was sleeping at that time and they wanted to show off to the world

Spitfire · 26th March 2009, 11:33

Hope it dosent happen. Would be a very sad day for us.

The ethics that they maintain are very high. Ya, ya i know about the Safari

Akshay1234 · 26th March 2009, 11:35

Quote:

Originally Posted by Tstag

See: Liquidity problems delay vendor payments: Tata Motors - Corporate News - livemint.com

Not a good sign. They are currently pleading with the UK government for a loan guarantee to refinance the bridging loan they took out on JLR. But the Brits are quite tough on anything that looks remotely like state aid. So I doubt they will get it. Why did TATA buy JLR if they couldn't afford it?

that article is dated feb 5th and someone had posted it earlier. i suggest this thread be locked.

PAVAN KADAM · 26th March 2009, 11:38

Quote:

Originally Posted by Spitfire

Hope it dosent happen. Would be a very sad day for us.

The ethics that they maintain are very high. Ya, ya i know about the Safari

Wow Safari is become a hot topic on every thread for every wrong reasons.

This thread did not warrant the mention, but anyways.

TATA group is one large company, i think they'll cruise through this tough times, and its not only them who are delaying vendor payments across the globe, there are lot many biggies doing that.

Good times lasts, but bad times lasts a bit longer during recession.

madhukar_n · 26th March 2009, 11:41

Stretch your legs only till the length of the bed !! (saying in kannada - though not a good translation).
But still if they have bought JLR with the intention of making it available to the general public(i mean low cost) then it makes sense, otherwise it will be status quo and they will have to exit at some point.
But still the respect to Ratan Tata remains.

vinayasurya · 26th March 2009, 11:47

S&P reduced the Tata Motors Credit Worty rating to B+. Also they reports Tata motors is likely to have liquitdity problems soon.

Source: NDTV Profit - Profit at Night

NetfreakBombay · 26th March 2009, 12:04

Related news:
Nano bookings to soothe Tata Motors funding woes - Home - livemint.com

sidindica · 26th March 2009, 12:08

if it goes bust, the entire indian economy will collapse.

at least it is way way better than GM in USA who are only making payments that to tier-2 suppliers from the bailout loans taken form US federal reserve and still they are begging for more loans..

ajmat · 26th March 2009, 12:35

Main issue is that Tata overpaid for JLR and used debt. No truck sales to feed the debt.

They do not need cash handouts for JLR only loan guarantees.

RR sales are down but they are looking at developing greener models. Jag which was the runt is doing well. XF is selling 0% more that last year during the same period. The new XJ will take things further.

csnanjappa · 26th March 2009, 13:11

S&P cuts Tata Motors ratings over cash flows - India Business - Business - The Times of India

MUMBAI: Even as the country and the Tata group celebrat the launch of Nano, global ratings major S&P put a spanner in the feel-good momentum.
On Tuesday, S&P cut ratings on Tata Motors to `B+' From `BB-'. Worse, it has also kept the company on ratings watch with negative implications, indicating there could be further cut in its ratings.

The rating action follows deterioration in Tata Motors' cash flows and other related parameters on a consolidated basis in an adverse operating environment, an S&P release said. These factors have combined with significantly higher debt levels of the company, which could further affect its credit rating, the release said.

HappyWheels · 26th March 2009, 13:17

With Nano bookings going like crazy and the ex-factory prices to be made up-front, guess they are sitting at a VERY huge pile of liquid cash! Now this was really some smart move from the House of TATA's.

rrsteer · 26th March 2009, 13:21

I think TML is at an inflection point. With the Nano, new Vista, new Safari, new Innova competitor, world truck etc - plus the various investments they have done. Either it will tank or in a few years it will come to be recognised as the game changer.
I speak to a lot of people within TML, and for some reason every one of them feels very proud of the company they work in. That to me is a very big positive.
But the skeptic that I am, if I owned a lot of TML shares I will short them.

aerohit · 26th March 2009, 13:49

Such threads should be deleted

TATA is not going bust

crap rumours

26th March 2009, 04:47	#1
Tstag BHPian Join Date: Dec 2007 Location: Coventry Posts: 73 Thanked: 9 Times	Is TATA motors about to go bust? See: Liquidity problems delay vendor payments: Tata Motors - Corporate News - livemint.com Not a good sign. They are currently pleading with the UK government for a loan guarantee to refinance the bridging loan they took out on JLR. But the Brits are quite tough on anything that looks remotely like state aid. So I doubt they will get it. Why did TATA buy JLR if they couldn't afford it?
	() Thanks

26th March 2009, 10:59	#2
vasudeva Senior - BHPian Join Date: Mar 2007 Location: Delhi Posts: 2,221 Thanked: 212 Times	Also read this specifically regarding Jaguar Land Rover: IHS Global Insight // Same-Day Analysis
	() Thanks

26th March 2009, 11:33	#4
Spitfire BANNED Join Date: Jul 2006 Location: Panaji - Goa/Bangalore - Karnataka Posts: 3,312 Thanked: 774 Times	Hope it dosent happen. Would be a very sad day for us. The ethics that they maintain are very high. Ya, ya i know about the Safari
	() Thanks

26th March 2009, 11:41	#7
madhukar_n BHPian Join Date: Apr 2007 Location: Bangalore Posts: 395 Thanked: 179 Times	Stretch your legs only till the length of the bed !! (saying in kannada - though not a good translation). But still if they have bought JLR with the intention of making it available to the general public(i mean low cost) then it makes sense, otherwise it will be status quo and they will have to exit at some point. But still the respect to Ratan Tata remains.
	() Thanks

26th March 2009, 11:47	#8
vinayasurya BHPian Join Date: Jan 2008 Location: BLR / KTM Posts: 67 Thanked: 13 Times	S&P reduced the Tata Motors Credit Worty rating to B+. Also they reports Tata motors is likely to have liquitdity problems soon. Source: NDTV Profit - Profit at Night
	() Thanks

26th March 2009, 12:04	#9
NetfreakBombay Senior - BHPian Join Date: Jan 2008 Location: Bombay Posts: 1,466 Thanked: 1,021 Times	Related news: Nano bookings to soothe Tata Motors funding woes - Home - livemint.com
	() Thanks

26th March 2009, 12:08	#10
sidindica Senior - BHPian Join Date: Jun 2007 Location: Delhi Posts: 4,892 Thanked: 8,106 Times	if it goes bust, the entire indian economy will collapse. at least it is way way better than GM in USA who are only making payments that to tier-2 suppliers from the bailout loans taken form US federal reserve and still they are begging for more loans..
	() Thanks

26th March 2009, 12:35	#11
ajmat Team-BHP Support Join Date: Feb 2004 Location: Bangalore Posts: 14,860 Thanked: 27,949 Times View My Garage	Main issue is that Tata overpaid for JLR and used debt. No truck sales to feed the debt. They do not need cash handouts for JLR only loan guarantees. RR sales are down but they are looking at developing greener models. Jag which was the runt is doing well. XF is selling 0% more that last year during the same period. The new XJ will take things further.
	() Thanks

26th March 2009, 13:11	#12
csnanjappa BHPian Join Date: Mar 2009 Location: Bangalore Posts: 296 Thanked: 152 Times View My Garage	S&P cuts Tata Motors ratings over cash flows - India Business - Business - The Times of India MUMBAI: Even as the country and the Tata group celebrat the launch of Nano, global ratings major S&P put a spanner in the feel-good momentum. On Tuesday, S&P cut ratings on Tata Motors to `B+' From `BB-'. Worse, it has also kept the company on ratings watch with negative implications, indicating there could be further cut in its ratings. The rating action follows deterioration in Tata Motors' cash flows and other related parameters on a consolidated basis in an adverse operating environment, an S&P release said. These factors have combined with significantly higher debt levels of the company, which could further affect its credit rating, the release said.
	() Thanks

26th March 2009, 13:17	#13
HappyWheels Senior - BHPian Join Date: Dec 2007 Location: Bangalore Posts: 4,106 Thanked: 537 Times	With Nano bookings going like crazy and the ex-factory prices to be made up-front, guess they are sitting at a VERY huge pile of liquid cash! Now this was really some smart move from the House of TATA's.
	() Thanks

26th March 2009, 13:21	#14
rrsteer Senior - BHPian Join Date: Dec 2008 Location: 144022 Posts: 1,235 Thanked: 3,128 Times	I think TML is at an inflection point. With the Nano, new Vista, new Safari, new Innova competitor, world truck etc - plus the various investments they have done. Either it will tank or in a few years it will come to be recognised as the game changer. I speak to a lot of people within TML, and for some reason every one of them feels very proud of the company they work in. That to me is a very big positive. But the skeptic that I am, if I owned a lot of TML shares I will short them.
	() Thanks

26th March 2009, 13:49	#15
aerohit BHPian Join Date: Aug 2007 Location: India Posts: 978 Thanked: 981 Times	Such threads should be deleted TATA is not going bust crap rumours
	() Thanks