Jaguar £1bn tax bail out
Last month there was speculation that Auto company Jaguar were in secret talks with the Government for a desperate plea for a cash injection to keep the company going through the tough economical times. These speculations were known to be fact today as car giant Jaguar has come in to ask for a figure which stand at £1 billion. There were a few raised eye brows as this car company is not even owned by Britain but yet still wanted British money to keep the company going. The company is Indian owned and Jaguar also make the car Land Rover.
Although a Indian owned company Government say that although this is a internationally owned company that manufacturing and jobs were still based in the UK. The car industry is having it’s toughest times that an industry has ever seen, with Jaguar not being the only car company to be struggling in these financial times, other car giants Ford, Chrysler and MG only last week went in to US congress in an attempt to get tax payers money in the region of $14 billion in fact. The bill did not go through, and more trouble is about to come the industries way. From November of last year production and sales were down by 33% which is a massive loss.
Many fear that if money was funded to Jaguar that this still wouldn’t be enough to keep the company going, with top economist saying that this type of budget bail out, would only just keep the company going for the next three years. Jaguar who currently employees 15,000 workers across the UK would be desperate to get this funding to keep them in jobs, but wide speculation say that these jobs will be lost as other ministers will oppose the bail out package for a company that’s not even British and is now in foreign hands.