Car company could be in trouble without government help

Wed, 25 Mar 2009



Jaguar Land Rover could be facing serious problems unless the Government pays up some £500 million of loan guarantees, car finance news suggests today. The parent company of the legendary car marques said that the group needs government backing urgently to reach working capital.

According to Ratan Tata, the company will see their long-term future damaged by a squeeze on research and development . Mr Tata reportedly commented: "If the attitude is to see who blinks first, then the damage is going to be quite devastating. What we have asked for is not a bailout. What we have asked for is help from the Government to facilitate commercial loans, because the banking system has come to a halt."

Tata bemoaned the state of the money markets by commenting: "It's impossible to find or have access to credit at reasonable rates. We have estimated £500m to ensure we can carry through major technology projects so that we can finish the development of new models."

The rescue of the British motor sector including vehicle finance arms is currently stalled.
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