Jaguar Land Rover Secures GBP175m Loan

Fri, 09 Oct 2009

Troubled carmaker Jaguar Land Rover (JLR) has announced it has secured further funding in the form of a £175 million loan from the State Bank of India .

The Tata Motors-owned car giant said it had "been making significant progress" in raising new finance and had now secured a total of £500 million of new funding facilities so far this year.

This includes facilities from Standard Chartered Bank, Bank of Baroda, and Burdale Financial Limited, a subsidiary of the Bank of Ireland .

"We are pleased our funding plans are progressing and appreciate the confidence shown by our banking partners in our business," said JLR chief finance officer Kenneth Gregor.

India's Tata Motors bought Jaguar Land Rover from Ford for £1.7 billion in June 2008. But the company lost £280m during the following 10 months (to the end of March 2009) with sales falling by almost a third.

To combat the economic downturn, JLR has slashed production over the past year, axed 2,500 jobs, frozen pay and cancelled bonuses.

Last month the car manufacturer, which employs around 14,500 workers in the UK, announced that it would close one of its West Midlands plants over the next decade as part of a wider restructuring drive to make the company more efficient.
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