Team-BHP - 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?

Quote:

Originally Posted by Tstag (Post 1231035)

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 :D

Quote:

Originally Posted by Tstag (Post 1231035)

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

Quote:

Originally Posted by Spitfire (Post 1231314)

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 :D

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.

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.

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

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..:Frustrati

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.

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.

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.

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. :)