AM Online

Jaguar Land Rover is not asking for a Government bail out according to the chief executive

Jaguar Land Rover has stressed it is not asking for a bail out or hand out from the taxpayer.

In an interview with the Birminghan Post chief executive David Smith said what the company actually wants is for the Government to do the banks’ job for them by providing either short-term loans or loan guarantees.

Smith said: "Unfortunately, now what we have got is really, I think, a once in a century event where you have a big recession and a lack of bank funding and liquidity in the market at the same time.
"So it is a really extraordinary state of affairs.”

He was still confident about the company’s future even without Government help because they have “great products, designers and innovative engineering.”

However he added they would have to adjust their investment and employment plans and probably have to cut back in areas they didn’t want to.

Meanwhile the Financial Times reports Jaguar's managing director Mike O' Driscoll hinted at more job losses at the unveiling of its XF and XK models at the Detroit Auto Show.

He said: "We are looking hard at our cost base. Clearly we have to make sure our business structure reflects the current market realities. That may well result in more job losses."

Over the past year Jaguar Land Rover has cut production schedules and reduced payroll by nearly 2,000.

The Financial Times also reports business secretary Lord Mandelson said at a cabinet meeting in Liverpool Tata, which owns JLR, would not receive a bail out.

Lord Mandelson called for a financial restructuring of the company saying the Government would act as a go-between with banks and investors to help the company.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest

Login  /  Register


No comments have been made yet.