Lifeline for Jaguar Land Rover workers

Apr 5 2009 by Jon Griffin,

“It is now important that the Government does stand behind the loan because the future of JLR is very important to the future of West Midlands manufacturing.”

JLR spokesman Mark Foster said: “We are making progress and we are pleased that the Government has recognised the need for financial support for what is a strategically important industry for the UK.”

He declined to make any official comment on the European Investment Bank announcement expected this week.

A JLR source added: “We are pretty confident that we have met the criteria for the European Investment Bank.

“But this does not mean that we get our hands on 300 million euros straightaway. It still has to be ratified by the UK Government, and that could be weeks away.”

In February Lord Mandelson told the Sunday Mercury’s sister title Birmingham Mail – during a CBI dinner at the Hilton Metropole Hotel attended by JLR Chief Executive David Smith – “We are prepared to guarantee these loans but the decision on the offer comes from the European Investment Bank itself.”

Now, with European approval looking certain, the Business Secretary will come under renewed pressure to finally underwrite the £270 million loan.

And JLR could be in line for a further cash boost if £500 million of Government money is made available in addition to the EIB application.

The news of a Euro nest-egg for JLR comes less than a month after the Government confirmed that it had offered Land Rover a grant of £27 million to help put the Range Rover-badged LRX Concept vehicle into production at the Halewood plant on Merseyside.

The car, first unveiled at the Detroit Motor Show last year, would be the smallest, lightest, most fuel-efficient vehicle yet produced by the Solihull 4x4 specialist.

The LRX would be a sixth model for Land Rover and sit alongside Range Rover and Range Rover Sport, both of which will continue to be produced at Lode Lane.