UK Export Finance to give Jaguar Land Rover 500 million pound loan guarantee

The Department for International Trade of the United Kingdom has announced that UK Export Finance will be providing Jaguar Land Rover with a £500m loan guarantee.

BREAKING: DIT are delighted to announce that @UKEF are providing @JLR_News a £500m loan guarantee supporting the design, manufacture and export of the company’s next generation of electric vehicles. pic.twitter.com/NrMVWw33jx

— Department for International Trade (@tradegovuk) July 15, 2019

The loan guarantee will support the design, manufacture, and export of the company’s next generation of electric vehicles. The International Trade Secretary, Dr. Liam Fox said the loan will also support the skilled manufacturing job in the UK. Theresa May met auto-industry representatives at a round table in Downing Street on Monday, including representatives from JLR, Ford, BMW, Nissan, Vauxhall.

Jaguar Land Rover (JLR), bought by TATA Group in 2008, saw a 12.2 percent decline in global sales at 42,370 units in May. The sales of the Jaguar brand of vehicles stood at 13,142 units in May, a dip of 9.4 percent over May 2018.  With the increasing loss of JLR, it has been widely believed that its spiraling debt will take down the Tata motors as well. With the Global rating agency, Moody’s believes that Jaguar Land Rover will probably default on its own loan.