Staveley Head

Staveley Head

August 18, 2009 04:00 ET

Jaguar Roars Again

FLINT, UNITED KINGDOM--(Marketwire - Aug. 18, 2009) - Tata, the owner of luxury car maker Jaguar Landrover (JLR), has announced that it is close to securing funding facilities with commercial banks, and would no longer be seeking the assistance of the British Government. In a statement Tata said that talks with commercial banks had successfully been concluded and the underwriting of a Pounds Sterling 292m loan from the European Investment Bank (EIB) is expected to be completed in the coming weeks.

The carmaker had previously turned to the Government after struggling to obtain funding from the private sector, but failed to agree terms with Lord Mandelson who demanded control over the company's business plan. There is a widespread suspicion of the Business Secretary's self-professed credentials and ability to successfully control an international motor manufacturing company. His last foray into this market was the Rover Cars debacle which ended production for that company.

JLR's chief executive, David Smith warned, however, that trading remains challenging and further actions may be necessary to protect the carmaker. He has not ruled out temporary plant closures.

Tata, whose factory in India ironically produces the world's cheapest car, bought JLR from the Ford Motor Company for Pounds Sterling 1.5 billion early in 2008. This new funding will enable JLR to launch the Jaguar XJ saloon and new Landrover models.

A spokesman for Staveley Head, one of the UK's leading motor trade insurance providers, said "Jaguar is one of the few remaining historically British marques and is also one to be proud of. It's the favoured executive transport of many of our clients and has been producing vehicles of distinction for over 80 years. Let's hope this funding secures the future of JLR for the foreseeable future."

The founder of the Jaguar marque was William Lyons who was just 20 years old when he launched the Swallow Sidecar Company in Blackpool in 1922. The company progressed to manufacturing motor cars, the first being the Standard Swallow SS1, until the company adopted the name Jaguar in 1935 when the first SS Jaguar 100 appeared at the London Motor Show of that year.

Staveley Head is one of the country's leading insurance brokers and will give you all the advice and assistance you need regarding this matter, if you log onto their website at www.staveleyhead.co.uk You can also compare insurance quotes and even take out motor trade insurance on line.

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