LONDON -- Jaguar Land Rover is not about to be sold to PSA Group, JLR owner Tata Motors and PSA said, denying a UK press agency report.
PSA is not in any hurry for "any acquisition and can stand alone," the French automaker said in a statement Thursday. "We are generating the cashflow necessary to pay for our future. If an opportunity comes, like Opel-Vauxhall, we will consider it."
Tata Motors said: "As a matter of policy, we do not comment on media speculation. But we can confirm there is no truth to these rumors."
The UK-based Press Association said PSA and Tata Motors are exploring details of cost savings after a tie-up nd a "post-sale integration" document outlines specific areas. Negotiations are moving quickly, according to an unidentified person at JLR, PA said.
PA said leaked information suggested a sale could be imminent, citing the integration document, which outlines the benefits of the two companies joining forces.
PSA CEO Carlos Tavares is seeking a deal that will expand the automaker's footprint outside of Europe, Bloomberg reported in March, citing people familiar with the matter. Fiat Chrysler Automobiles is attractive to PSA for its exposure to the U.S. and its premium Jeep brand, but Tavares also sees General Motors as a good fit and Jaguar Land Rover as a possibility, the people said.
PSA bought Opel/Vauxhall from General Motors in 2017 and has since restored the unit to profit after years of losses under GM.
Speculation has been mounting over JLR's future under Tata Motors, which bought the automaker from Ford Motor in 2008.
Jaguar Land Rover has been hit hard by slumping sales in China, the shift away from combustion and diesel engines, and strong historic links to the UK, where concern over a disruptive Brexit has weighed on demand and prompted some brands to move production.
Jaguar Land Rover needs to raise $1 billion within 14 months to replace maturing bonds, while feeding an investment program for electric vehicles that is burning through cash.
Tata posted a record $4 billion loss for its fiscal third quarter ended Dec. 31, and warned that JLR would swing to an operating loss in the full year to March.
Reuters and Bloomberg contributed to this report
