JLR Receives GBP170m Loan Boost

Tue, 17 Nov 2009

Struggling carmaker Jaguar Land Rover has announced it has secured a new five-year loan deal worth a reported £170m.

The new fund from GE Capital will allow the company to cash in on its finished vehicles long before they are delivered to showrooms around the world.

The asset-backed finance facility will be drawn down by JLR as soon as vehicles leave the group’s three UK production lines at Solihull, Castle Bromwich and Halewood.

The terms of the agreement will free up cash flow within the company by cutting the typical 30 to 40-day gap between producing cars and delivering them to dealerships in 90 countries.

Rich Green, chief executive officer of GE Capital’s distribution finance business, said the loan was the first of its kind for the European automotive sector.

"Having identified a large group of assets that had been underutilised we looked at how working capital can be freed up from them and we found a solution."

"We are talking to several other European car makers about a similar facility, but as far as we know this is the first of its kind."

Last month JLR announced it had agreed £500 million of new funding facilities from a number of banks, including Standard Chartered Bank, Bank of Baroda and Burdale Financial Ltd.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Credit Crunch Savers
HSA Dental Plan
Get covered from £7.70 per month!
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company