‘Talks over Jaguar aid package stall’

NEGOTIATIONS between troubled car marker, Indian-owned Jaguar Land Rover, and the Government over a multi-million pound aid package to help it through the recession, have reportedly hit a wall.

The £340m package from the European Investment Bank would fund innovation in new ‘green’ technologies.

According to reports talks between JLR’s owners Tata Group and the Department of Business stalled over the demands put in by the Government before it will act as guarantor to the loan.

Jaguar Land  Rover employs 15,000 people, 2,000 at a Jaguar plant at Halewood on Merseyside.

Company officials are said to oppose the Government’s conditions for management for the guarantee.

JLR needs the money as the demand for luxury cars has plummeted.Sales of Jaguar and Land Rover dropped by 30% and 37% respectively in March.

Tata had asked the UK Government to step in and underwrite loans, as commercial lending was not available.