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Jaguar Land Rover is negotiating to secure a £773 million rescue package which could help save thousands of jobs.

The car maker today confirmed that it is in talks with the British government for a £500 million loan which would have to be repaid.

Meanwhile, Jaguar Land Rover has now made a formal application for a €300 million (£273 million) loan from the European Investment Bank (EIB); these funds would be used to fund new more environmentally friendly cars.

While a decisi...Read the full article

Is Jaguar the only company not to have got any cash yet from the country in which it's factories are based ?

Autocar:

British government for a £500 million loan

funny that, Ratan Tata swore during his Sky interview last week that his company wasn't after a bailout, nor a loan, but merely a credit guarantee from the British govt.

Ratan Tata had a message for the British government. He said it had to make the banks lend Jaguar Land Rover money - in the form of a £500m loan guarantee.

He stressed several times that this was not a bailout. And he said that if the money was not forthcoming, and soon, the consequences would be "devastating".

http://blogs.news.sky.com/cityblog/Post:5c73c5dd-478d-42d0-8fc6-04e95607eae0

More bullsh1t from the bullsh1t tycoon.

Ratan Tata knew exactly what he was buying into when he bought JLR.  Fair enough, the XF cuts quite a dash, but the rest of the ranges are expensive, old school dinosaurs that mean very little to today's buyers.  Even bearing in mind the potential job losses at JLR and the associated suppliers, it just seems wrong that our taxes are potentially being used to prop up an asset(?) owned by an Indian billionaire.

Why do the imbeciles in the media keep refering to this as a bail out. It is a loan. Banks aren't loaning sufficient money to businesses so they need to seek alternatives.

Im sorry but we should not have to bail them out. I owned an XF & it was a distaster. 48 days off road  in 130 days of ownership having many faults fixed or so I thought. The sat nav logic is a joke & just does not work, the trim rattles, the sunroof vibrated, the fuel filler door refuses to open when you need to fill up & the seats are some of the worst I have ever sat in, small, no adjustment with no cornering support.  Jaguar cars Ltd & Taunton Jaguar did not respect me as a customer (the XF was my third Jaguar). Once you get past the rotating airvents & the rising gear selecter(you dont even notice this after a few days) the car is a poorly built overpriced rushed to market average car. Jaguar would not play fair & replace or refund me so the car has now been sold at a loss of nearl £10k lost over 6months.

Let the Indian Govt pay.

jeremyc:

Why do the imbeciles in the media keep refering to this as a bail out. It is a loan. Banks aren't loaning sufficient money to businesses so they need to seek alternatives.

Hear hear. Sensationalist nonsense.

If the British Government does not want to support local jobs, I don't see why Ratan Tata should put his money into sustaining JLR. Let it go bust...

 Or he could make a wise decision and close the British factories and move production of JLR to India...

It is a bail out, as Mr. Horse says (he has it spot on and well pointed out) he (Ratan Tata) has stated that he needs the money; you can call it a loan, but it is totally unsecured (or we end up with JLR if all goes belly up.....which woudl mean even more money) and thus as they need it, IT IS a bail out.  Ratan Tata said that he was going to fund it, I think it is terrible for the folks at JLR (really terrible) but no I do not think the UK gov. should give it any loan AT ALL; the EU can loan them what they like, but the the UK gov....NO.

Ratan Tata has enough money of his own, as above, he knew the position of the business when he bought it and promised to invest etc......he needs to use some of his own money; he cannot keep turning around and black mailing the UK gov.  It is an Indian owned firm (good bliss indian and indians, they are wonderful people) but the firm is indian and not UK owned; the Indians at the G20 were worried about protectionism, thus they should bail out JLR and show that they stick by there word, they should put money in and if they refuse then they are not good for their word.

Ratan Tata knew the risk, the UK gov. should not give them any loan (at all); JLR have access to funds other tech. firms can only dream of.....£500 million....if the banks will not lend him the money it is for a good reason! i.e. his business plan does not stack up....if Ratan Tata can afford to sponsor Ferrari then he can afford to pay for JLR.....if not he will have to sell it.......or JLR have to reduce the price of there cars to shift the volume required to survive....as someone else said...."simples"!!

UK Gov. "NO"....DO NOT DO IT.....

noluddite:

jeremyc:

Why do the imbeciles in the media keep refering to this as a bail out. It is a loan. Banks aren't loaning sufficient money to businesses so they need to seek alternatives.

Hear hear. Sensationalist nonsense.

No it's not, your comments are lame journalese, playing to lowest common denominator ignorance.

What else do you call a loan from a sovereign goverment of a foreign country when the rate of interest is below the market rate? Get a grip and study the facts before sounding off. This is no different to the French govt. providing cheap loans to its carmakers, an action that was heavily criticised by competitors as competition distorting. At least the French taxpayer can console himself with his money going to French enterprises. German car companies in distress like Daimler have not gone to the German govt. with the begging bowl but have sought private investors willing to invest for the long-term and inject real, new capital(the Emirs of the UAE). Why can't Tata do the same if his company is a good long-term prospect. The lack of Middle Eastern and Chinese interest suggests JLR/Tata is not a sound proposition. Tata is having to pay 600 points, 6% over money-market lending rates to borrow money, as much as 11% quite recently. One would expect this UK govt. loan to be at no more than 5%. Quite a benefit, or bailout from prevailing market conditions, which other less celebrated companies - many of JLR's smaller suppliers for instance - have to borrow at. 6% less interest on £800m over say five years would be worth £250m to Tata.

Let us not forget that Tata said only last week he did not want or need a loan from UK taxpayers merely govt ministers to impress on British banks  - now mostly owned by the British state - to lend JLR money. So what's changed in a week? RBS, LloydsHBOS won't lend JLR money because Tata is a major risk. In the last few days the major credit rating agencies have again downgraded Tata Group's credit rating. Yes Tata could borrow commercially from banks but as stated above it would be at penal rates and only for short-terms, say 12 months. That is why the UK govt. has been forced to step in and accede to Tata's demands. He was threatening the imminent closure of at least one plant/facility(Halewood/Whitley), just in time to wreak havoc in key marginals in Brown's planned snap election from his supposed post-G20 summit opinion polls bounce.

jeremyc:

Why do the imbeciles in the media keep refering to this as a bail out. It is a loan. Banks aren't loaning sufficient money to businesses so they need to seek alternatives.

I suspect that the "imbeciles in the media" refer to it as bailout because they have a better grasp of the English language than you apparently do.

Bailout (noun, informal). An act of giving financial assistance to a failing business or economy to save it from collapse.

Question to jeremyc: Will JLR go bust if they don't get some cash?

Clue: there's only one answer, and it isn't a 'no'.

So, it's a bailout.

It's a bailout whether it's given with strings attached, e.g. they have to pay it back, hence the term loan, or with no strings attached, e.g. they don't have to pay it back.

And they won't pay it back, because they'll have gone bust irrespective of any bailout.