A GBP800m finance package for Jaguar Land Rover is in doubt because of arguments between the UK Treasury and the Department for Business, Enterprise and Regulatory Reform, or BERR, according to a report in the Guardian newspaper.
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The paper says JLR executives were warned following a meeting with BERR executives last week that the conditions demanded by the Treasury in return for supporting the refinancing package may be so exacting that Tata will not agree them.
JLR is reportedly concerned that the Treasury may demand that the government is given an equity stake in the firm or that Tata pump another GBP300m into its UK subsidiary.
Reports say that concern is growing within the BERR over the delays to the implementation of the announced loan support for the auto industry.
