‘No bail-out’ for Jaguar
LORD Mandelson has confirmed there will be no government bail-out for Jaguar Land Rover.
The business secretary has been under increasing pressure to announce a rescue package for the business which is owned by the Indian conglomerate Tata.
Speaking in Liverpool ahead of a cabinet meeting Lord Mandelson said the government would act as a go-between with banks and other investors to help the company which employs 15,000 people with 2,000 at its Halewood plant.
Last month he warned that carmakers must “look to their own resources” and pass “some pretty tough tests” before receiving aid.
Tata, the company’s Indian owner, has pumped millions into Jaguar and wants the government to ease the availability of credit.
Lord Mandelson told reporters: “Jaguar Land Rover’s owners have put money in – they have sustained the company during this month.
“They have not asked for a bail-out and nor would they receive one. But some restructuring will be called for on the financial side of the company. That takes time to discuss with banks and other investors. The government will continue to play a role in that.”
Jaguar has already brought in several redundancy rounds and non-production weeks and later this month it is expected to cut production at Halewood to one shift a day.
