Accept government deal or lose European loans, says business secretary
19 July 2009

Jaguar Land Rover has been warned to accept the terms of a government loan guarantee or lose the money, according to reports.

The threat, reported in The Times newspaper, was made by Lord Mandelson, the business secretary, after months of wrangling between the two sides on the terms by which the government would agree to support a European Investment Bank guarantee.

Twitter - follow

Earlier this month the government is understood to have offered JLR's owner, Tata, revised terms for the deal. It is understood that this offer removed the contentious requirement for the government to be represented on JLR's board.

However, under the new terms Tata would not be able to alter its business plan without the approval of ministers.

The Times reported that ministers were surprised that Tata had not yet provided a response to the latest proposal and said the government was becoming increasingly frustrated with the stance adopted by the Indian company.

The government's guarantee is needed for JLR to receive a 340 million Euros (£290 million) loan from the EIB. A separate short-term commercial loan of up to £200m is also understood to be being negotiated by the company before a longer-term financing structure is established.

A spokesman for Tata Motors only said that discussions were "ongoing".

See all the latest Jaguar reviews, news and video

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Volvo V90
    First Drive
    19 October 2017
    The Volvo V90 is a big estate ploughing its own furrow. We’re about to see if it is refreshing or misguided
  • Kia Stonic
    First Drive
    18 October 2017
    Handsome entrant into the bulging small crossover market has a strong engine and agile handling, but isn’t as comfortable or complete as rivals
  • Hyundai Kona
    First Drive
    18 October 2017
    Hyundai's funky-looking Kona crossover with a peppy three-cylinder engine makes all the right noises for the car to be a success in a crowded segment
  • Citroën C3 Aircross
    First Drive
    17 October 2017
    The Citroen C3 Aircross has got funky looks and a charming interior, but it's another small SUV, and another dynamic miss. Numb steering is just one thing keeping it from class best
  • Skoda-Karoq 2.0 TDI 4x4
    First Drive
    16 October 2017
    Diesel version of Skoda’s junior SUV is unobtrusive and undemanding, but we’d still go for the silkier petrol version of the Karoq