Government Bungs Land Rover a £500m Promise to Guarantee EV Production

By Gary Cutlack on at

The government is vaguely state-aiding Jaguar Land Rover's ambitions to build its future EVs in the UK, and is to guarantee a loan of £500m in order to reassure investors and the buyers of its middle-aged-people-carriers that the carmaker is not going anywhere. Especially not down any drains or being sold to Sports Direct.

The money is not a handout as such; it's merely the government saying it'll pay the loan back should JLR go bust in a distant future, a bit like when mum & dad agree to go in to the bank and vouch for little Jimmy when he needs a £475,000 mortgage to purchase a bedsit on the fringes of London, and his job contract says he works zero-hours a week.

The £500m is backed by UK Export Finance, with an additional £125m facility being made available to the company from commercial banks. The funding news came out of a meeting UK carmaker executives had with the current prime minister this week, with the bosses of the likes of Ford, BMW, Nissan, Toyota and Vauxhall agreeing to formulate a Green Mobility Transition Board to coordinate efforts to reinvigorate the push to switch the nation to EVs.

Job one for the GMTB collective has already been announced too; pushing for a change to building regs that'll require all new homes built in England to have charging points, from an unspecified near-future date. [GOV]