Although a Indian owned company Government say that although this is a internationally owned company that manufacturing and jobs were still based in the UK. The car industry is having it’s toughest times that an industry has ever seen, with Jaguar not being the only car company to be struggling in these financial times, other car giants Ford, Chrysler  and MG only last week went in to US congress in an attempt to get tax payers money in the region of $14 billion in fact. The bill did not go through, and more trouble is about to come the industries way. From November of last year production and sales were down by 33% which is a massive loss.

Many fear that if money was funded to Jaguar that this still wouldn’t be enough to keep the company going, with top economist saying that this type of budget bail out, would only just keep the company going for the next three years. Jaguar who currently employees 15,000 workers across the UK would be desperate to get this funding to keep them in jobs, but wide speculation say that these jobs will be lost as other ministers will oppose the bail out package for a company that’s not even British and is now in foreign hands.

Jaguar £1bn tax bail out is a post from: Bad Credit Loans

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.

Another government bail out plea is a post from: Bad Credit Loans