Lifeline for Jaguar Land Rover workers

Apr 5 2009 by Jon Griffin,

CRISIS-hit Jaguar Land Rover looks set for a £270 MILLION cash bonanza after months of agonising waiting for 13,000 West Midland workers and their families.

The Midlands biggest manufacturer is set to hear within days that an application for a loan of 300 million euros will finally be confirmed by the European Investment Bank.

The loan, likely to be ratified on Tuesday, will free up JLR to develop new green vehicles and technology and help secure its future following months of falling sales, job losses and production cutbacks.

But JLR is still waiting for approval of a Government loan guarantee to underwrite the £270 million and enable the car-maker to fight its way out of the worst recession to hit the UK automotive sector in 40 years.

The imminent breakthrough for JLR was welcomed by MPs who had called for urgent action to save the Tata-owned group from continuing cutbacks and further lay-offs.

Solihull Liberal Democrat MP Lorely Burt, whose constituency covers the giant Lode Lane plant, said: “I am absolutely delighted but my immediate response is ‘About time too!’.

“The company is not asking for anything other than a Government-backed loan here. They are not asking for a bailout – they have done everything they can to retain as many employees as possible.

“This is the most welcome news that I could possibly imagine.

“The Government now needs to act as speedily as possible to endorse this decision. I will be knocking on Lord Mandelson’s door on Monday morning to make sure that this loan is now guaranteed.”

Northfield Labour MP Richard Burden, Chairman of the Parliamentary All-Party Motor Group, said: “I had heard that talks were going well and that JLR had met the European Investment Bank’s criteria, which is only right given that this company has a great business model for the future.