December 2008 Car News - GBCarLoans.com

30th December 2008

Green research call for Jaguar Land Rover

Jaguar Land Rover could make a case for funding based on green research says Tom Donnelly, professor of automotive business at Coventry University. Green research deals have been discussed by other governments to help European firms.

Donnelly believes Jaguar are more likely to get funding for reasearch purposes rather than just to help them with their temporary cash flow problems. Talks between Jaguar Land Rover and the government are due to resume next week over short-term financial assistance.

Indian motor giant Tata bought the company in March for £1.15bn. It employs about 16,000 staff at various plants and it was announced in November that it would let 850 agency staff go by the end of the year.

Prof Donnelly said: "The car industry is really suffering at the moment. This situation is not unique to Jaguar Land Rover and a huge case will still need to be made. But funding research is preferable to simply asking for a handout to spend on what it likes and governments are also under pressure to cut carbon emissions. I don't know how much money we are talking but it will not be a small amount. We are definitely talking mega bucks as research is not a cheap option."

Prof Donnelly said General Motors had invested £750m of its own money in developing a battery engine to generate electricity. Reasearch he believes is a legitimate way for the British government to help car makers and suppliers.

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