JAGUAR Land Rover has been granted a £500million loan guarantee by the government to ensure it ‘leads the world’ in electric vehicle development.
In the latest boost for UK’s largest car manufacturer, outgoing Prime Minister Theresa May signed off the deal as one her last acts in her post.
The company says future loans will support its continued investment into research and development of the design and manufacture of next generation of electric vehicles and future mobility solutions.
The complete settlement includes £500million from government credit agency UK Export Finance (UKEF), and a further £125million in loans from commercial banks.
A JLR statement said: “As part of its Destination Zero strategy: zero emissions, zero congestion, zero accidents, JLR is developing autonomous, connected, electric and shared mobility technology, which will feature in a growing number of JLR models exported around the world in the future.
“Earlier this month, JLR unveiled plans to produce a range of new electrified vehicles in the UK as it prepares to offer customers electrified options for all Jaguar and Land Rover models from 2020.
“JLR continues to implement Project Charge, its £2.5billion programme to improve long-term profitability and cash flow.”
The company earlier this month revealed plans to manufacture a range of new electrified vehicles at its Castle Bromwich plant.
It they will save several thousand jobs in the UK and the region, it says – in what the firm described as the most significant transformation in the plant’s history.
The first new electric car to be produced at the plant will be Jaguar’s flagship luxury saloon, the XJ.
The latest good news comes after the car-maker announced the drastic £2.5billion savings plan in January amid on-going Brexit uncertainty and falling sales.
Hundreds of jobs have been lost over the last year across the company’s West Midlands factories.
Castle Bromwich factory staff also voted to switch to a permanent four-day working week last month in a move that was hailed as ‘securing the future of the plant’.
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