Tata's JLR receives £340 million from EIB

08 April 2009

The much-awaited loans to Jaguar Land Rover (JLR) from the European Investment Bank for making low-emission cars finally came through yesterday, with the EIB passing Tata-owned UK car maker's loan application for €366 million. Nissan received €400 million.

Gaydon, Warwickshire-based JLR, employing about 15,000 people at its Merseyside and the West Midlands plants, will receive €366 million while the Japanese car maker will receive €400 million for its European division plants in Sunderland and Spain.

A loan was also approved for a Volkswagen plant in India, which will produce small cars that meet tougher emissions requirements, ahead of their planned launch in major Indian cities from 2010.

However both these loans, a part of the £2.3-billion package approved by the UK government for the UK car industry, (See: Britain unveils £2.3-billion loan for car industry) have yet to be underwritten by the UK government for the two car makers to avail of the loans.

JLR said in a statement: ''We are pleased the EIB has confirmed today that Jaguar Land Rover is eligible for £340 million in loan support. This loan will support our significant investments in environmental technologies that are crucial for the future and part of a total commitment by the business of over £800 million.''

The Japanese car maker said, ''Nissan is very pleased with the approval of the EIB loan, which will support the company's ability to develop and produce innovative products and technologies under the current challenging economic conditions.''