Tata owned Jaguar to receive emergency British aid to protect jobs

December 20th, 2008 - 3:25 pm ICT by ANI  

Gordon Brown

London, Dec 20 (ANI): The British Government has said that Jaguar Land Rover could receive emergency state aid within days to protect tens of thousands of jobs at the luxury car-maker, stressing that the responsibility for the firms future lies with its Indian owner, Tata.

Prime Minister Gordon Brown said on Friday that no decision had been made on what form of support could be offered, but he praised the quality of research at the company, which employs 15,000 staff in the West Midlands.

The Prime Minister said: Tata have taken over one of the best research and development facilities in our country. The Jaguar research development facility is the best in the car industry and one of the greatest facilities in Europe. And they have been investing in new research and development for the future.

Ministers will continue talks with the company at the weekend in an attempt to reach agreement by Christmas, but have said that they will not be bounced into any decision, The Independent reported.

Jaguar has asked for one billion pound to help it through the next 18 months. It said that it was not seeking a bailout, but was requesting short-term loans or loan guarantees because of its problems raising cash from the banks.

Ministers have asked Jaguar for detailed costings of its operation before sanctioning state aid. Pressure mounted on them on Friday after the US government decided to provide billions of dollars in loans to troubled carmakers.

The UK motor industry pointed out that France, Germany and Sweden are also providing emergency help for their companies. General Motors Europe, which employs 5,500 people at Vauxhall plants in Luton and Cheshire, has joined Jaguar in seeking government help, the paper said.

The pressure facing the automotive sector was underlined yesterday when nearly 300 job losses were announced at the Walsall-based car parts firm Wagon. (ANI)

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in Business |