Government gives Jaguar Land Rover £500m loan guarantee for next-generation EVs
Export credit agency backing will help secure funding – and see the manufacturer bailed out should it default on repayments
Jaguar Land Rover has received a £500m boost from the government over its next generation of electric vehicles.
The loan guarantee from UK Export Finance will support JLR’s design and manufacture of new EVs, as well as its export activities. Not a loan in itself, the government export credit agency’s guarantee will aid the British firm in securing credit and direct funding – with the government stepping in should JLR default on repayments.
Earlier this month, the manufacturer revealed plans to build an all-electric version of its next XJ saloon in the UK, with more to follow. New equipment will be installed at its Castle Bromwich factory in the West Midlands, with other sites set to benefit from investment too.
A battery assembly centre at Hams Hall, Warwickshire, will be operational in 2020, while electric motors for the XJ will be produced at JLR’s Wolverhampton engine production site.
News of the government’s loan guarantee to JLR comes after talks held by Theresa May at Downing Street yesterday attended by leading figures in the automotive and energy sectors.
A number of proposals to make EV ownership more convenient have also been set out by the prime minister. These include making England the first country in the world to fit every new-build home with an EV charge point, while charging network firms are being urged to offer debit or credit card payment options on publicly accessible rapid and higher-powered units by spring 2020.
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