Tata Motors has denied reports that Jaguar Land Rover (JLR) could be sold to French carmaker PSA as Unite called for clarification.
According to a Press Association report, leaked documents suggest that PSA – owners of Citroen, Peugeot and Vauxhall-Opel – are in discussions with Tata over the sale of JLR.
A Tata spokesman contradicted the report, saying, “As a matter of policy, we do not comment on media speculation.
“But we can confirm there is no truth to these rumours.”
It is reported that a “post-sale integration document”, detailing the benefits of such a merger, is circulating and that PSA and Tata are studying cost saving measures.
Responding to the reports, PSA said it can “stand alone” and is in “no hurry” to add to its portfolio.
However a spokesman for the firm added “if an opportunity comes, like Opel (Vauxhall), we will consider it.”
Unite national officer for automotive Des Quinn said the union has noted “Tata’s denial of these unhelpful rumours”.
Quinn said, “We will be seeking an urgent clarification from both Jaguar Land Rover and PSA.
“Our paramount concern is the livelihoods of our members who have worked hard to ensure the success of both Jaguar Land Rover and Vauxhall.”
“The industry is undergoing a period of major change driven by environmental and technological developments but to succeed it has to take its workforce with it.”
Unite assistant general secretary Steve Turner said urgent action is needed from the government to enable the UK car industry to successfully transition.
He said, “Adding to the uncertainty afflicting the automative industry is the government’s failure to support infrastructure investment supporting alternative fuel vehicles, to develop UK based electric and hydrogen vehicle technologies or to proactively intervene in the economy to encourage new sales of cleaner vehicles.”
“Unite has repeatedly said that the government needs to develop a meaningful coherent industrial policy and the difficulties currently being faced by the car industry demonstrate firstly that this has not happened and secondly, why this remains imperative.”