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Jaguar's Indian owner finds own rescue cash
Paul Waugh, Deputy Political Editor22 Dec 2008
The Indian owners of Jaguar Land Rover were set to inject "tens of millions" of pounds into the British car firm today after the Government played hardball over a state bailout.
Tata Group was poised to act following a warning from Business Secretary Lord Mandelson that no cash would be forthcoming until all private rescue attempts were exhausted.
The funding, which could help secure 15,000 manufacturing jobs and thousands more for suppliers, came after Lord Mandelson warned that the Government could only step in after Tata had done its bit to rescue the firm.
Yet behind the scenes, Tata received assurances that the state will become a "lender of last resort" if needed.
Gordon Brown had decided to intervene to prevent the collapse of the carmaker and was preparing to announce a short-term bailout package today or tomorrow.
But tough rhetoric in public and private reassurance appear to have helped the Tata Group to secure enough cash to postpone the bailout until after Christmas.
The Tata Group told ministers that it needed help to pay suppliers.
But over the weekend Lord Mandelson said: "If there is anything that the Government can appropriately do for any such company, then it will have to meet - and pass - some pretty tough tests."
But according to senior Whitehall figures, Tata found the cash because its banks were convinced that the Government would prevent a collapse.
Reader views (1)
Look Crash and Mandy, No-one wants a flaming expensive Jaguar or Land Rover anymore, Our Petrol costs too much to run them and Car tax is too expensive, let them fold and stop bailing out these has been big businesses!!!! Either that or do something about why no-one drives around in them in the first place!!!!
Crash, Mandy and Masters of the Universe stop trying to wallpaper the cracks and spending all Taxpayers money, face the facts and let the whole of the economy re-adjust, be it by stopping production of cars no-one wants or whatever.
- Dc, London, 22/12/2008 15:29
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