Jaguar-Land Rover refused to confirm or speculate on any meetings with the government, reports Automotive News Europe, but the company has previously backed a government bid to aid manufacturing in the UK, in addition to its own calls last month to improve the financial situation for the industry as a whole. The speculative target aid figure is currently at £1 billion ($1.49 billion).
In an October meeting with UK Prime Minister Gordon Brown, Smith said that while initial steps to help turnaround Britain's economy were positive, there needed to be more action if the economy is to see any real benefit. The projects undertaken last month by the government and the Bank of England included a move to open up the banking system and a cut in the interest rate to encourage spending.
Jaguar-Land Rover sales were down 19.4% through August of this year. The slump in sales has caused the company to lay off workers and idle its plants in Halewood, Solihull and Castle Bromwich for several days this summer, much like its counterparts around the world, seeking to balance its car supply with the newly shrunken levels of demand. Smith sees the situation as presently worsening, and thinks action must be taken to help the UK auto industry immediately.
"The economic environment is getting more challenging by the day and I do believe that, unless we introduce further measures to reignite the UK economy, there is significant risk," Smith said.
It wouldn't be the first time Jaguar had received assistance from the UK's government. The company has already received significant help with its hybrid and electric technology research from Britain's Technology Strategy Board. No solid projects have emerged from that funding, though the company is working on both diesel-hybrid technology that is thought to be aimed primarily at its Land Rover lineup, and a luxury sedan implementation for Jaguar.
Tata Motors' acquisition of Jaguar-Land Rover earlier this year had initially caused some fear for the future of the UK-based workforce, but reassurances from Ratan Tata, chairman of the Tata Group, that the company's new ownership wouldn't be shifting production away from its traditional base served to quell those fears. Jaguar's own Ian Callum said during the transfer from Ford to Tata ownership that he was 'entirely relaxed' about the affair, indicating his own confidence in the company's UK-based future under Tata.
Reader Comments
Sat Oct 11 2008 6:02 AM
Edward says
Where is Tata and his deep pockets? 19% drop in sales? Oops! sounds like Tata isn't willing to put up a single cent more than necessary. Then why doesn't he just let the UK gov't take over Jaguar and set up a new British Leyland. State money and private management with worker participation in profits would be be the best way to get Jaguar going again.
Mon Nov 24 2008 9:26 AM
www.mywheelsonwalls.com says
Bollocks Edward!!!
Did you ever drive a BL car? If you didnt I'll let you in on a secret THEY WERE A COMPLETE LOAD OF CRAP!!!!!! Some highlights from my childhood were a Dolomite, Meastro [sic], Princess, Spritfire, MG Metro Turbo, and the worst car ever a silver Allegro complete with a multi shade of orange stripe down the side, a special edition I''l have you know.
I remember at one point in the seventies due to some very poor management decisions you could only get your Jaguar in three colors, yes thats three. Another memorable achievement was the four year development time of XJ40 which on the calendar you and I use was infact eight years!!!
You'll find that Jaguar has never been better and what is coming down the pipe will really get your attention
Thu Nov 27 2008 2:24 PM
Edward says
Soory Sir mywheels,,,, I was referring to the concept of a state supported manufacturing group. Yes the BL of the 70's was garbage, but the idea of state intervention in tough times is attractive. And if you notice I said with worker participation in profits. That way the employess will be motivated to produce good products. Whereas in the 70's it was employee discontent that sent quality down the tubes.
Thu Nov 27 2008 2:30 PM
tlake says
[QUOTE]Then why doesn't he just let the UK gov't take over Jaguar and set up a new British Leyland.[/QUOTE]
That would be cool, I could finally get parts again for my Triumph TR7, or buy a new TR7...now I'm too excited.:D
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