Similar to the govenment assistance of American automakers, the British government is in negotiations with Tata Motors and the two-headed monster that is luxury carmaker Jaguar/Land Rover. However, much like here in the U.S., it is rough going for the automakers in completing a deal that would guarantee both short- and long-term financing.
The BBC said on its website that financial support for Jaguar/Land Rover from the European Investment Bank (EIB) was in jeopardy after a dispute over the terms of the loan. It is being reported that the carmaker would not accept strict conditions imposed by the British government in return for guaranteeing the loan, including the right to veto management decisions. The government is looking to impose a new chairman who would offer transparent control to protect taxpayers’ interest. Can you say Car Czar? Discussions also center on a 340 million pound ($512.7 million) approved loan to be used for development of environmental technologies.
The carmaker’s four UK plants employ 14,000 workers, and have been enduring tough sales declines for several years. Indian-owned Tata Motors bought Jaguar and Land Rover from Ford in June last year for about $2.3 billion.