British government guarantees millions in loan to Jaguar Land Rover

British government guarantees millions in loan to Jaguar Land Rover-loan

Jaguar Land Rover (JLR) had already announced in 2018 that it would not only offer new battery-electric models, but also want to take battery production for the electric models into its own hands in the future. It has now been revealed that JLR has secured a £625 million loan from 12 commercial banks for research, development and export of battery electric vehicles. UK Export Finance guarantees 80 percent of the loan.

The loan is part of JLR’s “Reimaging” electrification strategy, which was presented around a year ago, according to which JLR intends to invest around £2.5 billion (€3 billion) a year in electrification. The carmaker, which belongs to the Indian Tata Group, has announced that it will only sell fully electric Jaguar vehicles from 2025. With Land Rover, it should only be the case from 2036. So far, JLR has only offered one fully electric model, the aging Jaguar I-Pace, alongside a few plug-in hybrids. The new generation of Land Rover has a range of 113 kilometers in E mode with a battery of more than 30 kWh.

The British government is fully behind the plans. In November 2020, a ten-point plan for a green industrial revolution was presented, including phasing out combustion engines from 2030. In addition to promoting the development and production of e-cars, the plan also provides for the development of charging infrastructure, battery production and the production of green hydrogen. 80 percent of the vehicles built by JLR in Great Britain are exported, which is why UK Export Finance also guarantees the loan that has now been granted.

“Jaguar Land Rover is one of the largest car manufacturers in Great Britain. It supports the livelihoods of thousands of people across the country,” said Export Secretary Mike Freer, underscoring the government‘s commitment. Adrian Mardell, Jaguar Land Rover’s Chief Financial Officer, said it would help “support the significant investments in the transition to a fully electrified product portfolio and achieve the goal of net-zero CO2 emissions by 2039”.

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1 thought on “British government guarantees millions in loan to Jaguar Land Rover”

  1. It supports the livelihoods of thousands of people across the country

    A daring sentence, given the horrendous CO2 emissions of these vehicles. Well, I guess they will be fully electric well before 2036, especially off-road vehicles can be controlled much more finely if the machine is not idling.

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