Jaguar Land Rover gets £500m government loan guarantee to build EVs

Prime Minister announces guarantee, which will help JLR secure loans to further develop electric vehicles

Jaguar I-Pace front

Jaguar Land Rover has received a £500-million loan guarantee from the government, after Theresa May hosted automotive industry heads at 10 Downing Street in her final days as Prime Minister.

The fund – while not a loan in itself – is a state-backed guarantee that will allow Jaguar Land Rover to easily secure credit and direct funding in order to “support the company’s design and manufacture of the next generation of electric vehicles and its export activities”. It effectively means that in the unlikely event that JLR were to default on repaying the loan, the government would step in.

New Land Rover Defender: full details

Earlier in the month, JLR announced its next-generation XJ luxury saloon would switch from petrol and diesel power to batteries and motors, and be built at the firm’s Castle Bromwich plant in the West Midlands.

The £500m guarantee is being issued by UK Export Finance, the government’s export credit agency, which aims to “ensure no viable UK export fails for lack of finance or insurance, while operating at no net cost to the taxpayer.”

Jaguar Land Rover has suffered a series of setbacks over the last year or so, writing down £3.1bn worth of assets in May, and announcing it would cull 4,500 jobs from its UK workforce of 40,000. The company has faced dwindling sales in the key Chinese market, as well as being challenged by Brexit headwinds, and a product line-up that has been previously dominated by out-of-favour diesel engines.

But the firm stole an early march on its key German rivals by bringing the all-electric I-Pace to market a year ahead of the Audi e-tron and Mercedes EQC, and JLR’s commitment to EVs has been underlined by plans to build a “giga-scale” battery plant at Hams Hall, North Warwickshire.

This loan guarantee announcement is echoed by the Government’s pledges on EVs and emissions, and the need to firm up commitment, investment and export opportunities in a post-Brexit UK. 

Read more Land Rover news and reviews here...

Recommended

Petition forces MPs to debate 40 per cent fuel duty cut
News

Petition forces MPs to debate 40 per cent fuel duty cut

Government says 12 years of duty freezes mean drivers are “already saving £1,900”
19 May 2022
Speeding to be recorded as a cause of many more car accidents
Police car on scene at accident
News

Speeding to be recorded as a cause of many more car accidents

New police guidance for reporting will see a big rise in speeding recorded as a cause of car crashes
17 May 2022
World’s car bosses fear supply chain crisis will slow electric car production
Production line
News

World’s car bosses fear supply chain crisis will slow electric car production

Leading industry figures warn of looming problems at Financial Times’ Car of the Future Summit.
13 May 2022
Privately owned e-scooters to be legalised for use on public roads
E-Scooters
Consumer news

Privately owned e-scooters to be legalised for use on public roads

Transport minister announces plans to create new vehicle category for e-scooters as part of upcoming Transport Bill
12 May 2022

Most Popular

Best motorhomes 2022: the top 5 picks for all budgets
Chausson motorhome
Tips & advice

Best motorhomes 2022: the top 5 picks for all budgets

In the market for a new motorhome? Here are our top-five recommendations...
18 May 2022
New all-electric Volkswagen Aero B saloon to rival Tesla Model 3
Volkswagen Aero B exclusive image - front
Volkswagen

New all-electric Volkswagen Aero B saloon to rival Tesla Model 3

The new four-door VW Aero B EV could come with up to 435 miles of range and our exclusive images preview how it could look
20 May 2022
New all-electric Alfa Romeo Duetto Spider shapes up
Alfa Romeo Duetto Spider - watermarked front
Alfa Romeo

New all-electric Alfa Romeo Duetto Spider shapes up

Alfa Romeo bosses have confirmed that a new two-seat electric roadster is in the company’s rejuvenation plans and our exclusive images preview how it …
19 May 2022