A UK government spokesperson said today that Tata Motors has secured a 175 million pound ($289 million) private sector loan for Jaguar Land Rover and no longer needs financial support from Britain. The Department of Business, Enterprise and Regulatory Reform has been holding talks with Tata and Jaguar Land Rover on guaranteeing both short and long-term funding, but talks stalled when Tata refused to accept tough conditions imposed by Britain in return for guaranteeing a loan.
“This additional funding will allow JLR to invest in future models and successfully launch the new XJ saloon on schedule and updated Land Rover models later this year,” Business Secretary Peter Mandelson said.
“The government had offered bridging finance from the automotive assistance programme if necessary. We understand the Tata group will now be successful in resolving longer term financial needs but we are willing to help again if necessary.”
In January Britain pledged to guarantee up to 2.3 billion pounds of loans.
– By: The Daily Auto Editor