Thursday 25th February 2010

Jaguar Land Rover Bags £340m Loan

JLR gets European Investment Bank funding for hybrid drivetrain development

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Jaguar Land Rover has secured a £340 million loan from the European Investment Bank to help fund development of hybrid powertrains and more energy-efficient car bodies.

The eight-year loan has guarantee support from leading banks, including Credit Suisse.

Mr. Ravi Kant, Vice Chairman of Tata Motors, said: "We are very happy with the support extended to us by the European Investment Bank, State Bank of India, Credit Suisse, and other banks. This will support the progress of turnaround in Jaguar Land Rover's business in challenging market conditions, alongside cost cutting measures, increase of volumes and the improved margins strategy currently being implemented by Jaguar Land Rover."

The EIB loan completes the last major element of the funding plan for Jaguar Land Rover. Last year the company secured over £500 million of funding.

[T89 Callan]

I hope JLR continue with their recent run of great cars and success.

Fom what I worked on the next phase of Facelifeted Jags looked stunningly gorgeous.

[ar0u2211]

so you're gonna sell more, cut costs (corners) and improve margins - in a down market? Adventurous I'd say.

I hope it comes good though as I'm all of a sudden drawn to jags when I've previously found them pretty dull affairs.

Must be getting old

[robm3]

The cynic in me asks why highly profitable parent company Tata needed to loan against JLR when they have a cash surplus.

Assuming JLR has to repay the loan then it now carries the burden of interest into cash flow.

Hopefully the loan will be well spent and create additional profit...

[bencollins]

Pity Jag did not buy my range extender engine in June 2002, when i tried to sell them one, they might have saved a few bob!
Ah well, funny old world. Relaunch Paris September 2010, maybe the world is finally ready!

[paddock4x4x4x4]

Good news just dont waste it like some other loans. Thought! do you think they could use some of the cash to back a better dealer net work in South Wales as the company group that has the franchise has a monopoly in the area and dont know a thing about the product.

[vintageracer01]

ar0u2211 said:

so you're gonna sell more, cut costs (corners) and improve margins - in a down market? Adventurous I'd say.

I hope it comes good though as I'm all of a sudden drawn to jags when I've previously found them pretty dull affairs.

Must be getting old

No, YOU are getting wise! That' what it is.
And you finally developed some taste, I am afraid.
Wonderful.

[A Scotsman]

Our taxpayers money going into an Indian owned company. Strategically naive is being generous.

[TotalControl]

If this is done right then this could be very good news. It would be nice to see some alternative competition from a nicely revamped company. I'm really starting to like some of the latest efforts of the company.

[fatboy b]

A Scotsman said:

Our taxpayers money going into an Indian owned company. Strategically naive is being generous.

It's a loan.

[bobdylan]

Tata seem awfully good at getting what they want from goverments , personaly i think there BENT and would go well out my way to avoid anything with there name conected to it
wonder if they will keep CORUS steel works open now .......

[soad]

T89 Callan said:

I hope JLR continue with their recent run of great cars and success.

Me too, they are churning out nice lovely cars atm.

[cardigankid]

A Scotsman said:

Our taxpayers money going into an Indian owned company. Strategically naive is being generous.

One, it's NOT our money, it's from the European Investment Bank, and this sure beats giving it to the Mafia in Italy, funding a property bubble in Dublin, paying greedy MEP's or that odious preck Neil 'Lord' Kinnock and his even fatter wife.

Two, so it's an Indian owned company. So what? Do you know how many of our country's assets including offices occupied by the Government for which they pay exorbitant 'pre-crunch' rents are owned in tax havens.

Three, Jaguar cars are produced in the UK when I last checked, employing UK citizens, supporting other UK businesses, and building on a UK skills base. When it isn't let's discuss this again.

Anything that gives Jaguar an edge has to be good. If Tata get a spin off for their non-UK operations, good for them. Where were the UK based companies that were prepared and capable of buying the company as opposed to flipping it for a quick profit to some asset stripper? The Jaguar product has gone from the good to the outstanding in a manner few would have believed 15 years ago.

[Piston-Ed]

12 comments on this story so far - compared to over 300 for the TVR comeback story. What does that tell you about P-H readers....

Shaguars are finally heading in the right direction, if only they started this progress 10 years ago...

[cardigankid]

What it's a comment on is the number of teenagers sitting in darkened rooms with PC's.

[Superlight R500]

Might help their current trend of launching superb motor vehivles

Edited by Superlight R500 on Thursday 11th March 17:46