Jaguar and Land Rover say they require short-term financial support, not a bailout
19 December 2008

Jaguar Land Rover has denied reports that it is seeking 'a bailout' from the government.

The company has desribed itself as “a healthy, viable business”, which needs short-term support to cope with “a national emergency requiring urgent action”.

The comments follow reports that trade secretary Peter Mandelson is on the point of announcing loan guarantees for JLR.

Jaguar Land Rover believes both its requirements and its UK role are widely misunderstood.

It is at pains to point out that it was solidly profitable until the first half of 2008 and its business continues to support up to 75,000 jobs.

Jaguar Land Rover holds a special place as one of the UK’s biggest contributors to automotive R&D (its 2007 spending of £400 million represented around 50 per cent of the total UK outlay) and its annual exports are worth £4bn.

The company says it has “strong investment and product plans for the future” and that its parent, Tata Motors, has invested “hundreds of millions” in JLR since committing £1bn to buy the business from Ford around six months ago.

“Our current concern, along with the rest of the industry, is short-term liquidity and demand,” said a company spokesman.

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22

19 December 2008

"It is at pains to point out that it was solidly profitable until the first half of 2007,"

I think you will find that JLR were profitable up to the end of quarter 2 of THIS year.

Well done JLR for denying the "BAILOUT"

With media on the lookout to get such depressing headlines all the time, no wonder the country is going to ruin!

Global Warming.. My Rs

19 December 2008

[quote Autocar]Jaguar Land Rover has stiffly denied reports that it is seeking “a bailout” from the government, describing itself as “a healthy, viable business”, which needs short-term support to cope with “a national emergency requiring urgent action”.[/quote]

Grade A bovine excrement.

JLR have been caught out. Weeks ago Ravi Kant, Tata Motors MD, was secretly asking the UK Govt. for major funds - see Times exclusive.

In the last 48 hours the press comment on the likelihood of Mandelson doling out the cash has grown and grown. Unfortunately so has the backlash from a lot of people. This has spooked JLR and Tata. The obviousness of giving one billion pounds to a company producing predominantly in the West Midlands, with up tp 30 marginal seats come a snap Feb 2009 election has not gone unnoticed either. It's simply too transparent to be credible.

Lastly as if to show the chaos that reigns at JLR/Tata only this morning the Bengal born, Labour peer, close business associate of Ratan Tata and major beneficiary of any UK govt. bailout at his Warwick Manufacturing Group, Lord Battacharyya, has demanded that his Labour govt. colleague and fellow Labour peer, Lord Mandelson, immediately come up with the cash to secure the '75,000 jobs' and stop the 'debilitating uncertainty'.

Perhaps before JLR/Tata put out this 'bailout denial' press release this morning they should have commuincated to Lord Bhattacharyya what the 'line' for today was, in the best Labour 'on-message' traditions. Oh dear, how embarrassing, and what a banana republic shambles. This is what comes of foreign ownership, govt interference and generally too many fingers all round in the pie of an at base failing commercial enterprise.

http://www.birminghammail.net/news/2008/12/19/lord-bhattacharyya-calls-on-government-to-end-agony-for-16-000-jaguar-land-rover-workers-97319-22513051/

“A total of 16,000 people are dependent on Jaguar Land Rover. It is important that JLR not only survives but that they keep the people on. They are essential for the country,” he said.

“Every other car company in Europe is getting funding – I do not see why Jaguar Land Rover should not get it." - K.Bhattacharyya

19 December 2008

[quote horseandcart]

JLR have been caught out. Weeks ago Ravi Kant, Tata Motors MD, was secretly asking the UK Govt. for major funds - see Times exclusive.

[/quote]

horseandcart = Times Business Editor

Another 'EXCLUSIVE' as another 75,000 people wonder about their job security.

Media = Major contributing factor to the extent of this downturn

Global Warming.. My Rs

19 December 2008

Have you read the whole article that you have posted a link to above ? - I'll highlight the bits that you appear to have glossed over

Lord Bhattacharyya denied that JLR was seeking a bail-out from the taxpayer. "They are asking for some loan guarantee scheme at commercial interest rates which they will pay back when times are good - "They want a loan guarantee they do not want help in the sense of aid.

But Shadow Business Secretary Alan Duncan said: "What companies such as Jaguar Land Rover and Nissan need is credit help, not unconditional bail-outs, to prevent those companies viable in the long-term going to the wall."

And CBI Director-General Richard Lambert said today the Government had to act urgently to save "an industry that is vital to our future.

"The Government has to stand in and put the balance sheet behind an industry which is vital to our future. The whole industry needs access to credit and I think this is something the Government could do and should do with urgency. This is not money that is being given away, it is money that will be repaid."

As the Autocar article says - JLR was a profitable company until the middle of this year - I believe the profit figures to be £327 million operating profit in 2007 and £310 million operating profit in the first half of 2008. Jaguar is in the middle of rebuilding it's brand and product portfolio - XF is performing fantastically well given the current conditions and there are more world class products to come. As soon as JLR manages to re-align it's manufacturing capacity to post banking crisis volumes and the new XJ and T5s are on stream, it will be back on track.

19 December 2008

Chips

Why can't the media find it in themselves to place FACT at the forefront of their headlines?

This blatant EXCLUSIVE driven media is undermining confidence in UK industry at a very difficult time.

Maybe some job losses in this sector may change their outlook?

Global Warming.. My Rs

19 December 2008

Because the headline " Iconic British brands making world class products are looking into the possibility of securing government loans on commercial terms to cover short term funding issue " does not sell papers.

However " Foreign owned manufacturer of planet murdering pointlessness wants free money from taxpayers " does.

The requests for help are being led by the SMMT on behalf of the British car industry, yet it's JLR that has become the whipping boy – that's life I guess. Still – I've no doubt the press will have a great time laying into the government when Britain no longer manufacturers anything of significance and the financial services industry has gone completely tits up.

19 December 2008

That's the problem horseandcart its all these media headline go-getters that will finish ALL UK Industry, fact doesn't sell papers!

Wonder if we will ever see the headline 'MEDIA GROUP SEEKS BAILOUT'

I doubt it.

Don't be a sheep - keep an open mind.

Global Warming.. My Rs

19 December 2008

Lord Bhattacharyya, Indian born Labour peer, head of Warwick Manufacturing Group(contractor for JLR and Tata), associate of Ratan Tata, today called in the stongest terms for UK taxpayer assistance to JLR to be settled immediately.

Is this the same Lord Bhattacharyya who just six months ago said:

"He[Lord Bhattacharyya] won’t speculate about how much money Tata will pump in over the next five years[into JLR], over which time it has guaranteed the business plan and model line-up, but suggests it will be "several billion pounds".

"several billion pounds"!?

My word, just over six months later it is not Tata that is dipping into its pocket for billions to pump into JLR, but the British taxpayer.

'Job numbers, says Lord Bhattacharyya, will remain the same and if sales improve then new people will be taken on.'

'It is, he says, a text book takeover – a win/win situation for both Tata and willing seller Ford.'

My word again, only six months ago, when US housing crash was already a year old, the UK govt was loading up on VED/purchase tax rates for gas guzzlers and the first signs of a crash in Britain's own housing pyramid scheme were evident and this economic 'guru' was gaily prophecying win-wins and possible sales and job gains. Had this man, this 'guru' been living under a stone? Had he not heard the constant news on sub-prime, stock markets crashing and the 'credit crunch'? Jesus wept, and this is the guy who the British govt. should now heed over the sense of bailing out JLR, which of course he would stand to gain from through WMG activities. No sir, you are a patent fool or knave and are as far as possible from being impartial in the matter, for your advice to be considered.

http://www.birminghampost.net/birmingham-business/birmingham-business-news/automotive-business/2008/03/26/tata-means-a-better-future-says-lord-bhattacharyya-65233-20678785/

'Tata means a better future, says Lord Bhattacharyya' - May 26th 2008

http://www.birminghammail.net/news/top-stories/2008/12/19/lord-bhattacharyya-calls-on-government-to-end-agony-for-16-000-jaguar-land-rover-workers-97319-22513051/2/

'Lord Bhattacharyya calls on Government to end agony for 16,000 Jaguar Land Rover workers ' - December 19th 2008

19 December 2008

[quote horseandcart]No sir, you are a patent fool or knave and are as far as possible from being impartial in the matter, for your advice to be considered.[/quote]

If a 'patent fool' is what I am for supporting this nation's industry then so be it.

Global Warming.. My Rs

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