So the word is out – Jaguar Land Rover is talking to the UK government about a potential bailout plan. With the recession deepening and sales dropping off (all apart from the XF, of course), company big-wigs have approached Whitehall cap in hand, asking for bridging finance to help them through these tough times.
I guess it was always going to happen – and, in the current climate, the government really has no option but to agree – helping secure thousands of jobs in Coventry, Birmingham and Halewood will be foremost on their minds.
The one thing that baffles me though, is where does Tata fit into all this? After all, we were assured that Ratan’s company was cash-rich and would be able to bankroll Jaguar Land Rover towards its bright new future… and here we are, a few months later, with a severe cashflow problem.
I hope that Jaguar Land Rover gets through the next couple of years unscathed – and that the government and its management do the right thing by keeping faith. Having said that, how many times and to how many institutions can the government continue to hand out billions here, billions there, before it’s all gone?
I still cannot help but wonder what MG Rover could have done with a couple of billion back in 2000. I think we all know the answer to that one…
[Source: BBC News]
Is the Editor of the Parkers website and price guide, formerly editor of Classic Car Weekly, and launch editor/creator of Modern Classics magazine. Has contributed to various motoring titles including Octane, Practical Classics, Evo, Honest John, CAR magazine, Autocar, Pistonheads, Diesel Car, Practical Performance Car, Performance French Car, Car Mechanics, Jaguar World Monthly, MG Enthusiast, Modern MINI, Practical Classics, Fifth Gear Website, Radio 4, and the the Motoring Independent...
Likes 'conditionally challenged' motors and taking them on unfeasible adventures all across Europe.