Currently reading: JLR denies it needs 'bailout'

Jaguar and Land Rover say they require short-term financial support, not a bailout

Jaguar Land Rover has denied reports that it is seeking 'a bailout' from the government.

The company has desribed itself as “a healthy, viable business”, which needs short-term support to cope with “a national emergency requiring urgent action”.

The comments follow reports that trade secretary Peter Mandelson is on the point of announcing loan guarantees for JLR.

Jaguar Land Rover believes both its requirements and its UK role are widely misunderstood.

It is at pains to point out that it was solidly profitable until the first half of 2008 and its business continues to support up to 75,000 jobs.

Jaguar Land Rover holds a special place as one of the UK’s biggest contributors to automotive R&D (its 2007 spending of £400 million represented around 50 per cent of the total UK outlay) and its annual exports are worth £4bn.

The company says it has “strong investment and product plans for the future” and that its parent, Tata Motors, has invested “hundreds of millions” in JLR since committing £1bn to buy the business from Ford around six months ago.

“Our current concern, along with the rest of the industry, is short-term liquidity and demand,” said a company spokesman.

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