Another government bail out plea
Jaguar land rover today showed that they were also suffering and desperately needed a government based loan, with a long list of other companies on the governments hit list, this shows that every sector of the economy is suffering with this being the latest company to step up to the government to help them get out of financial ruin. The figure is said to be set around the £1bn mark. Just like other motoring companies struggling such as Chrysler who also who is in need of a loan, to help against the disastrous economy and lack of sales. The loan only comes literally nine months ago when they were bought by Indian conglomerate Tata Group from Ford for £1.3bn. The amount they got that was funding from a £2bn loan from banks which the rest of the outstanding amount went into the running of the company.
Tata group who also owns Tetly tea, came in for secret talks with the government to try and get the massive tax paying bail out. With fears that the amount could not be paid back due to the severe lack and drop of sales. Making it almost impossible to make repayments back. Were the loan would be say over two years, sales and profits could not pay back the money that’s needed from the government.
With other car companies suffering as well with the drop in car sales it does not look good, with other companies such as GM, who own Vauxhall , they look to be heading towards bankruptcy unless the US government can step in with a rescue plan and a large sum of money.
Jaguar has a work force of around 15,000 and produce up to 350,000 cars a year but the production number is set to fall dramatically because of the fact that car sales as a whole have dropped by 25%. Gordon Brown will be analyzing this situation very carefully, as the collapse of Jaguar would stand to lose a large amount of employees.
