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JLR’s Halewood Plant May Close

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Posted On: Jul 13, 2009 By: Category: Land Rover News

It’s a case of Indian management waiting on the British Government to come through with cash to save a Merseyside plant, and it doesn’t look good…

Land Rover dealership

A senior official was overheard saying that JLR is running out of time and options because the government is dragging its feet on its loan agreement.

“We’re approaching crunch time”, he said, “and the Government doesn’t seem to care. Ministers are sitting on their hands doing nothing. There is sense in India that a major plant closure could be the only option left.”

The Jaguar Land Rover plant in Halewood currently keeps about 2,000 workers busy. The government was supposed to offer a credit guarantee deal which would allow the company to receive a 340 million pound loan through EU banks to keep the workers paid and all of the factories humming.

But, in a move the echos the Obama administration, Ministers are said to want the right to exert high level management control at JLR, including the right to choose a chairman and sit on the board.

The Government also reportedly demanded the right to veto any redundancies.

Since when do elected government officials know how to run a car company? If they were really serious about JLR’s future viability – and their own economy – they would get out of the driver’s seat and vote to put up the money necessary to keep the company moving forward.

I mean… is it just me?

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