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.
