British Govt. to bail out Jaguar Land Rover: Reports


(RTTNews) - The British Government has reportedly decided to bail out Jaguar Land Rover. This comes on the heels of media reports that Tata Motors has agreed to inject "tens of millions" of pounds into JLR, to weather an immediate cash flow crisis.

It is reported that Prime Minister Gordon Brown was preparing to announce a short-term bailout package on Monday or Tuesday. "A state package worth hundreds of millions of pounds will be negotiated in the new year to save a firm claimed by its Indian owner to be of key strategic importance to Britain's economy," the Times reported.

British Prime Minister Gordon Brown said on Friday the government wanted to help the car industry through the economic downturn but the main responsibility lies with the carmakers.

Source: http://www.nasdaq.com/aspxcontent/Ne...ver:%20Reports

 

Well they got what they needed from both parties (government and private capital). I agree that a hybrid approach is prudent and necessary in this case as the full burden of a company shouldn't lie on the shoulders of the British Government.