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£1bn bailout on cards for Jaguar and Land Rover
Simon English18 Dec 2008
The Government has admitted it is seriously considering a £1 billion bailout of Jaguar-Land Rover as the global car industry teeters towards collapse.
Jaguar-Land Rover is owned by Indian outfit Tata, controlled by Ratan Tata, one of the world's richest men. It is seeking £1 billion in loan guarantees as it battles recession.
Trade and Industry Minister Lord Mandelson told Sky News: "I've had discussions with the owners of Jaguar-Land Rover because they are under particular strain."
He claimed there would be "no open cheque book" for struggling firms.
Jaguar-Land Rover employs about 15,000 in the UK. Taxpayers would underwrite the company loans, if Gordon Brown approves the idea.
Meanwhile, embattled Detroit carmakers General Motors and Chrysler have reopened merger talks as a possible way to survive as the companies wait for news of a White House rescue package.
All three major US carmakers plan to shut down manufacturing plants because of the slumping domestic market. Chrysler is closing 30 plants for a month from tomorrow, Ford will shut 10 of its North American assembly plants for an extra week in January instead of the normal two-week holiday while GM has shelved plans for a new factory in Michigan.
Reader views (4)
Anthony.. absolutley agree. Why must we pay this to Jaguar just because it is UK based. It is owned by Ratan Tata and it is his problem now. The government are doing this merely to try and protect any potential voters..
- Joanna, london, 18/12/2008 17:34
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The State funding of Tata’s Jaguar and Land Rover outfit. An interesting idea on the day that Tata announces it is going to sponsor the Italian F1 racing team Ferrari.
Does that really mean the UK taxpayer is to fund Italian racing aspirations?
- Ian, Reading, England, 18/12/2008 17:04
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Why is it that New Labour can find hundreds of millions of pounds to hand out to friends who recently made an unwise business decision when Land Rover was bought yet refuse to help other British companies? I hope that the EU stop these unfair subsidies.
- Wendy, London, 18/12/2008 13:24
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This is completely wrong to even consider a loan to TATA, especially as the owner is one of the worlds richest men.
Let him put up his own money to rescue HIS company NOT taxpayers money.
Private companies must stand or fall in this economic climate not keep crying out for handouts.
I appreciate that jobs will be lost, so be it.
We did not rescue Woolworths , why this Indian owned failing company.
- Anthony Calladine, WESTON SUPERMARE ENGLAND, 18/12/2008 12:49
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