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JLR Gets Funding, But Not From The Government

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Posted On: Aug 12, 2009 By: Category: Land Rover News

The U.K.'s Business secretary Peter Mandelson said the development was "welcome". 'Sha! His Government didn't have to shell out to support the company! This is good for Tata Motors and a shot in the arm (turbo boost?) for auto manufacturers everywhere.

The Indian owner of Jaguar Land Rover has told the UK government it no longer needs support, thank you. In effect, saying, "your terms were outrageous and you'll be in our grille for ever more. No thanks!"

So Tata Motors secured private funding. You know, the old-fashioned way.

Tata said it had secured some direct bank loans, as well as guarantees that would allow it access to a £340m European Investment Bank loan. Government funding had apparently been offered but it never materialized, after a failure to agree to the terms of the cash injection.

"The fact that the banks and commercial capital markets are meeting JLR's funding is a clear sign of confidence in the company, its products and the automotive sector," Lord Mandelson said.

"This is a good and encouraging outcome for JLR, its workforce and its supply chain," he added, saying the government had offered bridging finance, and would be "willing to help again if necessary".

In a letter to Lord Mandelson, Tata chairman Ratan Tata said he hoped the funding that had been secured would help it "succeed in re-establishing these venerable British brands to their earlier glory". In fact, workers have been returning to their regular schedules at plants throughout the U.K., and JLR seems well placed to lead its niche back into prominence on the world stage.


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