U.K. Guarantees Jaguar Loans After Pledge to Make Electric Cars

Alex Morales and Christopher Jasper
(Bloomberg) -- The U.K. gives Jaguar Land Rover Automotive Plc a 500-million pound ($626 million) loan guarantee to support the development of electric cars, Prime Minister Theresa May said on Monday.Guarantee to JLR, a unit of Tata Motors Ltd., issued by government export credit agency U.K. Export FinanceLoan will support JLR’s design, manufacturing and export of next-generation electric carsMay met auto-industry representatives at a round table in Downing Street on Monday, including representatives from JLR, Ford, BMW, Nissan, VauxhallTo contact the reporter on this story: Alex Morales in London at amorales2@bloomberg.netTo contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, Thomas PennyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

(Bloomberg) -- Jaguar Land Rover Automotive Plc won a 500 million-pound ($626 million) loan guarantee from the U.K. government, just over a week after announcing a new range of electrified cars will be made at a plant in central England.

The guarantee to JLR by the U.K. Export Finance agency was granted to support the design, manufacture and export of electric cars, Prime Minister Theresa May said after a round-table meeting of auto-industry representatives in Downing Street on Monday.

JLR, a unit of India’s Tata Motors Ltd., will invest hundreds of millions of pounds transforming its Castle Bromwich site near Birmingham after previously committing to electrified options of all new models from 2020. The first electric vehicle off the production line will be the ninth generation of Jaguar’s flagship XJ saloon.

The news on Castle Bromwich, which safeguards thousands of workers, provided a much-needed boost for a British automotive industry that’s been rocked by job cuts and plant closures. Brexit, a slowdown in China and flagging demand for diesel-powered vehicles have taken a toll on JLR, which said in January it would slash 4,500 positions worldwide to conserve cash.

May met senior auto-industry figures including representatives from Ford Motor Co., BMW AG, Nissan Motor Co. Ltd. and Peugeot parent PSA Group’s Vauxhall arm.

To contact the reporters on this story: Alex Morales in London at amorales2@bloomberg.net;Christopher Jasper in London at cjasper@bloomberg.net

To contact the editors responsible for this story: Tim Ross at tross54@bloomberg.net, ;Anthony Palazzo at apalazzo@bloomberg.net, John Bowker, Frank Connelly

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.