£500 million loan guarantee should be enough to upgrade the Castle Bromwich plant with peace of mind about funding.
Jaguar Land Rover recently announced an investment in its Castle Bromwich manufacturing plant in the UK, meet with a supportive response from the British government.
Because of the plan to modernize the plant, keep the jobs and produce new electric models from 2020 (mostly for export), the K government decided to give JLR a £500 million (€553 million/$620 million) loan guarantee from government export credit agency UK Export Finance
“The meeting is part of wider action from government to support the automotive industry, and the Prime Minister confirmed today that Jaguar Land Rover will receive a £500 million loan guarantee from government export credit agency UK Export Finance. This will support the company’s design and manufacture of the next generation of electric vehicles and its export activities.
The help is very important for JLR, which experienced a noticeable sales drop of both the Jaguar and Land Rover brands. On the other hand, the UK is aware that automotive investments in the country are declining, which triggers support packages to keep the jobs.
According to Bloomberg, Tata Motors (the owner of JLR) will invest hundreds of millions of pounds into the Castle Bromwich site, which is comparable with the amount of loan.
Source: gov.uk, Green Car Congress, Bloomberg
Source: Read Full Article