State aid for Jaguar Land Rover has been delayed after its parent company agreed to put extra cash into the car maker. Ministers had warned they will not be "bounced" into a decision, stressing the responsibility lies with its Indian owner, Tata.
They have made clear they supported the principle of state support for Jaguar because of the excellence of its research and its importance to the automotive industry. But they were more sceptical over whether Tata, which bought the business from Ford for just over £1bn six months ago, had examined all opt-ions for tackling its cashflow crisis.
The Government wanted Jaguar to provide details about its order book and liabilities. Whitehall sources claimed Government "hardball tactics" had forced Tata to find more money. The move only lifts the threat to Jaguar until next month. The company has asked for up to £1bn support for the 18 months in loan guarantees or short-term loans.Reuse content