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Jaguar Land Rover today received a £175 million cash injection of private funding and the carmaker's Indian owners Tata said it is no longer seeking state support.
The move was immediately welcomed by Business Secretary Lord Mandelson, since the firm had been engaged in negotiations with the Government over possible funding for months. He described the deal as a “good and encouraging outcome” for JLR and its workforce, and a “sign of confidence in the company, its products and the automotive sector”.
He said the Government had offered bridging finance, and would be "willing to help again if necessary".
Tata said it had organised a mixture of funding, including direct bank loans and guarantees that would give it access to European Investment Bank funds.
In a letter to Mandelson, Tata chairman Ratan Tata said he hoped the cash would help it "succeed in re-establishing these venerable British brands to their earlier glory".
Tata bought Jaguar Land Rover from Ford in June last year, spending £1.7 billion on the car group.
