Jaguar Land Closes in on Loan

The UK branch of Jaguar Land Rover (JLR) posted a 673.4 million pounds loss ($1.11 billion) for 2008, a reversal of the 641.5 million pounds net profit posted for 2007, according to accounts filed last week by the automaker to British authorities last week.

Despite their negative balance, JLR is about to receive a government guarantee for a bridge loan, as negotiations between owner Tata Motors and the British officials are drawing towards a conclusion.

According to a report by Financial Times, citing a person familiar with the matter, the UK is prepared to give JLR a guarantee for a 175 million pounds loan. Tata Motors is said to push for a 12 month-long loan. The only problem is that the UK government is only prepared to give Tata six month, as well as asking for board representation.

Back in early July, the confirmation of loan talks came from the British prime minister, Gordon Brown.

I talked to Mr Tata a few days ago. I assured him of our willingness to help Jaguar and Land Rover make the investments that they want to make. We have been in correspondence with them on proposals we have made to the company, and their response to these proposals," Brown said.

And we are determined to work with Jaguar to make sure we have a strong and dynamic and high technology car industry in this country. So, talks will continue with Jaguar.

JLR needs the government loan to prevent plant closures in the UK. The warning came from Ravi Kant, chairman of Tata Motors, who said "there may be requirements in the future to shut plants.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram X (Twitter)
About the author: Daniel Patrascu
Daniel Patrascu profile photo

Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories