Tata Motors' case for state financial aid for Jaguar Land Rover today received support from Britain's biggest trade union, which wants the government to provide help by Christmas, as Tata has injected more cash into the company.
Tony Woodley, joint general secretary of Unite, said that there was little reason for the British government not to act now that Tata Motors had injected more cash.
Jaguar Land Rover, which employs 15,000 people in Britain, was reported to have received 'tens of millions' from Tata Motors, which will stave off an immediate cashflow crisis.
Woodley told The Times: 'I'm delighted that Tata has put more financing into the company. It is obviously right that they do so, having bought it only nine months ago.
'I would now be extremely surprised if the government did not give financial support to the company as well and I would be very surprised if it wasn't this side of Christmas. I would be disappointed if there was not confirmation of the availability of a loan or credit guarantees at least,' he said.
Reports, however, said that despite Woodley's optimism, a state bailout is unlikely to come before Christmas.
"As far as we are concerned, the situation is little changed from how it was last Friday night. I'm not expecting it (a government support package) this side of Christmas, but then we are not fully in control of this, it is the government," Mark Foster, a Jaguar Land Rover spokesman, said.
Tata Motors, which bought Jaguar Land Rover from Ford in March for $ 2.3 billion, borrowed $ 3 billion to finance the acquisition and to step up production of its low-cost Nano model.
Reports said that Tatas have secured 'last minute funding' for JLR as bankers were convinced that the UK government will prevent a collapse of the luxury car maker.
