We want credit, not state aid: Jaguar chief

Tata Motors-owned Jaguar Land Rover has said it does not want a bailout from the British government, but seeks its help in the form of credit.

We want credit, not state aid: Jaguar chief

Tata Motors-owned Jaguar Land Rover has said it does not want a bailout from the British government, but seeks its help in the form of credit.

The crisis in the car industry due to falling sales and economic downturn has been a major issue with public campaigns launched in Britain for government help.

Jaguar Land Rover Chief Executive David Smith said the company did not want state aid but hoped to enlist help from government officials in a meeting next week on the flow of credit.

Smith said, "We don't want government money. What we actually want is for the government to help us get funding flowing back into the industry again. "Either through direct commercial loans or the government may have to provide loan guarantees as I know it's thinking of in other circumstances as well."

Smith told Sky News that the company was committed to its production facilities in the UK where he saw much scope to produce more vehicles.

"We are working very closely with our unions and we have a very good relationship with them. What we're both keen to do is to try to avoid any further redundancies because clearly we don't want to lose skilled workers at this time, we need them for the future," he added.

"So what we're trying to find is if we can find between ourselves some other ways to reduce costs but we're working also to get further help from the government as I said on credit."

According to the Society of Motor Manufacturers and Traders, the number of cars made in December fell 47.5 per cent compared with December 2007, while commercial vehicle production was down 56.7 per cent.

The society's chief executive Paul Everitt said the industry needed more government help.

"The whole industry is trying to adjust to a very different level of demand. We are going through an adjustment period and that's why we are looking for sufficient help from the government," Everitt said.

"UK vehicle production figures for 2008 demonstrate both the strength of the sector and the very dramatic fall in demand in the last quarter," he added.

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