Talks between Jaguar Land Rover (JLR), Tata Steel and the UK government over a proposed bailout to mitigate the impact of the pandemic have fallen through, the Financial Times reports.
The talks, which aimed at securing government support under the UK's Project Birch plan to bail out strategically important companies, are said to have ended because JLR didn't meet the requirements to qualify for taxpayer support.
However, the report also suggests JLR management was unwilling to meet requirements to decarbonise its fleet further in order to obtain financial support. The requirements would've meant a significantly accelerated electrification plan and the need to phase out diesel engines (both brands' core propulsion method in terms of sales) far sooner.
Tata Steel, a subsidiary of JLR parent company the Tata Group, said in a statement that it "remains in ongoing and constructive talks with the UK government on areas of potential support". However, the Project Birch funding scheme is said to unfeasible for the firm, due to the conditions companies have to meet to qualify for it. JLR has yet to respond to the report.
JLR recently reported a "significant impact" from the pandemic and associated lockdowns in its quarterly results. Sales volumes fell by more than 42% year on year from March to the end of June, and a £413 million loss was reported.
As a result, the company has increased its cost reduction target by another £1 billion to £2.5bn for this full financial year. However, JLR also notes "particularly encouraging" sales recoveries in China and North America, while 98% of its global plants have resumed production.
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Poor reliability
I would be put off owning a JLR product just for the poor reliabilty.
@jagdavey
Not gonna happen.......
We know that's not gonna happen because the British have never & will never support their own jobs. They'd sooner pay an extra 10% for their German limo's than buy home grown. They have this inferiority complex that everybody else does it better.
jagdavey wrote:
JLR do not have an EV specific platform to compete with VW, Mercedes, BMW etc and the cost to develop one would cost far more than Birch was being asked for so it is plain that JLR have no intention to embrace electric cars in the manner they need to in order to survive. U.K. taxpayers have paid out billions to TATA /JLR over the recent past and to say that government have not/ will not support them is nonsense.
Sad but true..
I mourn the loss of a once proud nation. What the UK needs is a "f&*k you" policy that promotes the talent that this country clearly has. We have invented and given away so much intellectual property that has lined the pockets of Silicon Valley and the far east. We need to invest in the talent we have rather than dole out "dinner money" to scroungers in the summer holidays
Lol
After they have bet the house on the diesel, it's understandable.
No worries, the world will not end without JLR but it might end with their dirty tanks on the roads.
A cry for H 'elp
Perhaps JLR told Boris all their plans re: hydrogen as reported earlier in Autocar. No wonder he didn't give them any tax payers money!