Jaguar Land Rover (JLR) is reportedly pressing the UK government for a GBP1bn loan to help it through the industry downturn.
 
The Tata-owned company wants to borrow the cash for two years, according to reports in the British media.
 
While the company’s latest model, the Jaguar XF, has been favourably received, the company is facing cash-flow problems as a result of declining markets. Production schedules have already been scaled back as a result.
 
Access to finance is emerging as a growing issue for firms in Britain as result of the problems still impacting the financial sector and the banks’ general reluctance to offer credit to businesses.
 
JLR’s parent borrowed heavily to finance the JLR purchase and is likely to favour JLR trying for low-cost finance from the British government.
 
Last week, the UK auto industry trade association SMMT, called on the British government to help the auto industry with a number of measures.

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