Jaguar Land Rover

Electric car loan guarantee agreed for JLR

BBC Business News

Jaguar Land Rover has secured a £500m loan guarantee from the UK government to encourage the carmaker to build electric cars in the country.

Jaguar XJ
Getty Images

The deal was been signed off by Prime minister Theresa May, in one of her last big interventions before leaving Downing Street.

The deal will provide a big boost to the UK car industry, which has seen heavy job losses over the past year.

The move comes just over a week after the company announced a new range of electric cars will be made at it's Castle Bromwich plant.

Jaguar XJ to go electric

The Jaguar XJ is to become an electric-powered car - after 50 years running on petrol or diesel.

Jaguar Land Rover is facing flagging sales and says going electric is vital to its recovery strategy.

Jaguar's 50-year old XJ model to be electric-powered
Jaguar's XJ series is to be electric-powered - after 50 years of running on petrol or diesel.

JLR: SMMT calls for giga-scale battery production

workers at a Juguar Land Rover factory
Getty Images

Today’s news is a huge boost for the UK motor industry and reaffirms Britain’s potential to become a global leader in zero emission technologies. To realise this, however, we need the right conditions to encourage more manufacturers to invest, innovate and sell competitively, including massive infrastructure investment and long-term support and incentives for consumers. When it comes to automotive supply, distance matters and securing significant giga-scale battery production here in the UK will be essential to future-proof this sector

Mike Haweschief executive, Society of Motor Manufacturers and Traders (SMMT)

Empty JLR production line

BBC International Business Correspondent tweets

Hopes that JLR will prompt rivals to invest too

worker on production line looking into a car body
JLR

Stuart Apperley, director and head of UK automotive at Lloyds Bank Commercial Banking, has been looking at the implications of Jaguar Land Rover's plans to build electric cars in the UK.

It is an important announcement for the entire sector, he says.

"While Britain remains one of the best places in the world to make cars, there have been concerns about falling behind others in leading the charge in the development of electric vehicles – principally the US, Japan and Germany. Everyone in the industry will hope JLR’s move prompts others to follow suit in demonstrating their commitment to the UK.”

Car worker morale had been 'rock bottom'

BBC International Business Correspondent tweets

Clark: JLR protects thousands of jobs

Greg Clark
Getty Images

Business Secretary Greg Clark says the announcement by Jaguar Land Rover about making electric cars in the UK is a "vote of confidence in the UK automotive industry - protecting thousands of skilled jobs".

"It reflects our determination for the UK to be at the forefront of the development and manufacturing of the next generation of electric vehicles.

“The government has made a big strategic choice in its industrial strategy to be a leading force in the move to electric vehicles...we are now perfectly placed to host a gigafactory and we are determined to realise that ambition".