Government May Help Jaguar
State aid may be needed to save Jaguar and Land Rover. The government has confirmed to the BBC and Sky News that it has had talks with the car manufacturer and that it may indeed help it with financial aid.
Jaguar Land Rover was bought by India’s Tata in June for £1.7bn ($2.6bn) but it still employs around 15,000 people in the UK. Since the take over Tata has cut production due to the economic climate.
This has not stopped Tata announcing a major sponsorship deal with the Ferrari F1 team, no valuation of this deal has been confirmed by Tata or Ferrari.
The Society of Motor Manufacturers and Traders have already warned that the UK car market is struggling.
SMMT chief executive Paul Everitt said, “The motor industry is facing unprecedented market conditions which are having a direct impact on UK jobs and manufacturing. Normally strong companies are facing a bleak future purely as a result of the global banking crisis. It is now vital for UK government to follow the lead of other EU countries and act immediately to demonstrate its commitment to the motor industry and manufacturing as a whole.”
Lord Mandelson told Sky News, “We are analysing very carefully what is going on in the car sector and we will make good judgments in good time if it is appropriate for the government to take any action or if it is possible for us to do so. I have had discussions with the owners and management of Jaguar Land Rover in particular, because they argue that they are under particular strain. It is not just the carmakers themselves and all those employed directly in the production of cars, it is the huge supply chain of many small and medium-sized enterprises that supply components and other elements to that very important manufacturing process.”
Simon McBride
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