Ministers 'considering Jaguar loan'

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

Business Secretary Lord Mandelson could approve a £500 million loan to the company, which employs around 15,000 people in the UK, the Sunday Times claimed.

The possibility of a loan comes amid fears of thousands of job losses across the industry as car sales fall away in the credit crunch.

The lack of loan availability saw new car sales plummet by more than a third in November compared to 12 months earlier.

And on Friday President Bush came to the rescue of the US car industry by offering 17.4 billion dollars (£11.5 billion) in emergency loans in exchange for concessions from the companies and workers.

According to the newspaper, talks of a Government guarantee for a commercial loan to the firm have shifted towards a potential direct loan because there was still no certainty that it would be able to borrow the cash. Jaguar Land Rover chief executive David Smith is said to be working on a contingency plan to cut thousands of jobs if aid is not forthcoming.

State help for the business would be controversial however because the firm is owned by Indian conglomerate Tata. But industry bosses told the Sunday Times that around 100,000 jobs from the 850,000 supported by the industry could go by next Easter.

A spokesman for the Department of Business, Enterprise & Regulatory Reform declined to comment on speculation of a loan.

He said: "Lord Mandelson has said the government does not have an open cheque book to bail out ailing companies. The government is doing all it can to help businesses overcome the current financial and economic challenges.

"Jaguar Land Rover have owners who are well resourced, who have first responsibility for sustaining the companies that they own in existence and in production for the future. The Secretary of State has confirmed that government is talking to industry bodies about the current economic difficulties the sector faces."