UK government demonstrates commitment to supporting mass electrification with new investment and proposed regulations
Felix Page Autocar writer
16 July 2019

Jaguar Land Rover has received a £500 million loan guarantee as part of a new government initiative to support UK car manufacturers’ electrification schemes. 

In a meeting of automotive industry leaders at 10 Downing Street, Theresa May announced that the guarantee would be provided by UK Export Finance. The nature of the investment means that if JLR were to default on repayments, the government would act as the company's guarantor. 

The loan guarantee will assist JLR in readying its Castle Bromwich production facility for the next-generation XJ saloon, which has now been confirmed as an all-electric rival to the Porsche Taycan and Tesla Model S, arriving next year. 

The outgoing prime minister also reaffirmed the UK government’s ongoing commitment to sustaining domestic manufacturing, stating that the significant investment will aid JLR, as the UK's biggest car manufacturer, in its shift to electric vehicle production. 

The move is the latest in a series of government-backed schemes to facilitate the roll-out of electric vehicles. Recent changes to the UK’s company car tax system have eradicated benefit-in-kind charges for EV drivers, and Number 10 has spoken out against the difficulties of accessing, and paying for, charging points in normal driving situations. 

Joining JLR at yesterday’s roundtable event were representatives from Aston Martin, BMW, Vauxhall and Nissan, alongside counterparts from energy companies Shell and BP. 

The bodies have come together to form a green mobility transition board, which will see them coordinate plans for the industry-wide switch to zero-emissions powertrains. The conglomerate’s first large-scale project will be the construction of a new ‘Gigafactory’ near Coventry for the production of EV batteries. 

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The prime minister announced, additionally, that plans are in place to make mandatory the fitment of domestic EV charging points to all new homes in the coming years. 

The UK’s electric vehicle infrastructure is widely regarded as ill-prepared for the move away from conventionally fuelled powertrains, and the government is under pressure to support manufacturers and suppliers as they race to build and sell the next generation of vehicles. 

Read more

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Comments
15

16 July 2019

As I've said many times

Bumbling from one crisis to another except this time at our expense

Laughable

16 July 2019

There seems to be some real hatred for JLR. I just wondered why?

16 July 2019

£500m just as JLR's £500m bonds come due for payment .. one might even call it state aid ..... thought that was illegal in the EU?

A sticking plaster, will they do this again in March 2020 when the next £500m comes due for payment?

As lambo says, why are the taxpayer footing the bill for the failure of JLR management?

16 July 2019
CarNut170 wrote:

£500m just as JLR's £500m bonds come due for payment .. one might even call it state aid ..... thought that was illegal in the EU?

A sticking plaster, will they do this again in March 2020 when the next £500m comes due for payment?

As lambo says, why are the taxpayer footing the bill for the failure of JLR management?

 

So imagine JLR said to the government. ‘We really aren’t sure about a hard Brexit, think we should make all our electric cars in the EU’

Govt - ‘but that would undermine the case for Brexit, how about we underwrite a loan’

 

JLR - ah go on then

16 July 2019
TStag wrote:

CarNut170 wrote:

£500m just as JLR's £500m bonds come due for payment .. one might even call it state aid ..... thought that was illegal in the EU?

A sticking plaster, will they do this again in March 2020 when the next £500m comes due for payment?

As lambo says, why are the taxpayer footing the bill for the failure of JLR management?

 

So imagine JLR said to the government. ‘We really aren’t sure about a hard Brexit, think we should make all our electric cars in the EU’

Govt - ‘but that would undermine the case for Brexit, how about we underwrite a loan’

 

JLR - ah go on then

This money will go directly to JLR creditors without passing go, it has nothing to do with EVs.

The point is, the government giving a crutch to JLR stops the full blown crisis - and therefore change of management that is so badly needed, to allow JLR to make strategic decisions that will provide them sustainable growth.

Germany, France, Spain will indeed give state aid - we cannot as Germany won't let us. What a great reason to leave the EU to prop up our industries as we want to.....

16 July 2019

They'd just give the manufacturers taxpayers (or EU) money directly.   Anyhow alot of the JLR haters out there are so incensed they're are struggling to realise this is just a guarantee for any commercial loans, time for them to stop frothing.

16 July 2019

I have complained about the lack of strategic vision, but this is a big step in the right direction.

Suck it up JLR haters :-)

16 July 2019

Because they were absent from this roundtable event, does it mean that the Government has totally given up on Ford & Toyota?? Or maybe they've already told the government in advance that they are shutting up shop after Brexit?

16 July 2019
jagdavey wrote:

Because they were absent from this roundtable event, does it mean that the Government has totally given up on Ford & Toyota?? Or maybe they've already told the government in advance that they are shutting up shop after Brexit?

FORD 'shut up shop' on the car making business in the UK long ago they realised they could make it cheaper in Spain etc yet still pretend it's a UK brand. Thanks EU!!

Toyota have done the same thanks to 'cars for cheese'.  Thanks EU!!

16 July 2019

Probabaly because their credit rating is now so bad they needed a government bailout - sorry just a loan guarantee - why not get it from the Indian governemt?

https://www.coventrytelegraph.net/news/coventry-news/jaguar-land-rover-credit-rating-16518950

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