Jaguar loan guarantee in doubt

itsnever2lateisit?

Contrast this with the billions thrown at the banks, and the only reason JLR need a guarantee (not a bail out) is because the banks still aren't lending

http://news.bbc.co.uk/1/hi/business/8036476.stm

Alan_M_2

I' m reading between the lines here that this has less to do with cold hard cash than it does with politics and ownership.

The govt are posturing saying Tata should be bankrolling the business......Tata know what a PR disaster it would be to let JLR go bang and are holding out for a bit of free security......

Interestingly, despite losing money, the govt see JLR as a long term viable business.....funny how very selective they can be when they want to be......

The "Govt backed" EFG loan requires business to have shown both profit and growth during the last 12 months...the most difficult trading period in living memory.

I can't see JLR being alloed to get into trouble, this is simply political posturing and no more.

Cannon_Fodder

Part of me thinks Tata are big enough to look after their own investment choices. If they bought a failing business, tough. If its not a bad business after all, someone will get it cheaply, usually when its in administration.

Recognise the "manoevering" likelihood, though.

The other part of me does wonder where the QE money has gone...

How does it actually get to a business?

1984ReturnsForReal_2

itsnever2lateisit? wrote: »

Contrast this with the billions thrown at the banks, and the only reason JLR need a guarantee (not a bail out) is because the banks still aren't lending

http://news.bbc.co.uk/1/hi/business/8036476.stm

Not stricky true what you write though is it?

Banks arent lending to who?

To LRJ - Because they think the business should get rid of its stock?

The man off the street - To finance a car deal when new cars are dropping in value at record levels?

Or, to Company Directors who want to by top end of the market cars through their companies in the middle of the biggest recession since the 40s' & record company bankruptcies?

I could go on..........

Alan_M_2

Realistically, there is little insentive to lend and certianly no compulsion.

I really don't see where the average new Jaguar Land Rover buyer will be coming from in the coming 12 months, do you?

itsnever2lateisit?

If I were TATA I would simply protect my investment by 'lift and shift' to India

1984ReturnsForReal_2

Cannon_Fodder wrote: »

The other part of me does wonder where the QE money has gone...

How does it actually get to a business?

Its propping up Lloyds & others.

Its a scam arranged prior to Christmas with the HBOS deal.

Thats where the QE (printing cash) idea came about. It was either that or they all collapsed.

Its been one big lie since then.

Alan_M_2

itsnever2lateisit? wrote: »

If I were TATA I would simply protect my investment by 'lift and shift' to India

Why do that, it would remove any possible aide from the UK govt keen on saving face and being seen to protect UK jobs.

cocktail

itsnever2lateisit? wrote: »

If I were TATA I would simply protect my investment by 'lift and shift' to India

that probably wont happen as it will be a PR blow for the govt. however it will be a lesson well learnt for the TATA's

confused31_2

The only reason tata dont want to have the government backing is because, they dont want them interefeering, the government have told them they want someone from the government on the board of directors.

Now i have very close links with people who work at JaguarLandrover and the the main three models are going on shifts in May to support the 2010 model year, they have been told that come the begining of 2010 JaguarLandrover will be showing a profit again.

People may say they have cut back, but i know for a fact all the tracks in there at the moment are working at full capacity on straight days.

The workers agreed a 2 year deal with tata before they even got the government backing from the government, by reducing their pay.

Now what i believe is tata took advantage of the downturn and got the workers to agree a cut back in their working week, and whilst they done that they thought, we might aswell try and screw the government out of some money aswell.

Now when the government said we want some involvement at board level, tata have had to think again, because if someone from the governmemt is on the board of directors, they will see how they have manipulted the situation for their own needs.

Tata knew Landrover sales would drop because new models are coming out later this year, whos going to buy a range rover/discovery at the end of 2008, begining of 2009, when the new model is coming out late 2009, i know i wouldnt.

i mean the 2010 model year cars have over 3000 new parts, who wants to buy the old one, when the new ones out in 6 months??

http://landroveroneten.com/2009/04/new-land-rover-models-for-2010/

confused31_2

Well they never got the loan and guess what happened.

http://www.bbc.co.uk/news/business-10928441