Jaguar Confirm New Electric XJ to be made at Castle Bromwich with £500m Government Loan
Added: 30 July 2019
Jaguar Land Rover has received a £500 million government loan to ensure that they are able to build electric cars in the UK. The loan will be used to produce the new electric XJ at the producer’s plant in Birmingham. It will be the first electric car to be produced by the brand in Britain.
The guarantee was made during Theresa May’s final days in office as Prime Minister and will ensure that JLR will be able to continue to gain secure loans and develop vehicles in the UK.
It’s important to note that the fund is not a typical type of loan but rather a state-backed guarantee. It will ensure that the company can secure credit as well as direct funding easily. It has been provided to specifically assist with export activities as well as the production of next-gen electric vehicles. Essentially, this means that if the company defaulted on the loan payment, the government would then cover the cost. However, this is unlikely to occur.
A New Generation
The company announced earlier in the year that the XJ luxury saloon would be built at the Castle Bromwich plant. For the company, this was a commitment to continue to support the production of cars in the UK, even in the wake of Brexit. It also marked a change for the XJ as rather than petrol or diesel the company announced it would be powered by batteries and motors.
The guarantee was provided by the UK Expert Finance. This is the government’s own expert credit agency. The aim of the agency is to guarantee that no UK export suffers from failure due to a lack of insurance or finance without impacting the typical taxpayer.
A Brighter Tomorrow
Recently, JLR confirmed that they had sustained a massive record £3.1 billion in annual losses. Due to this, the company announced that they would be cutting 4,500 jobs. The business suggested that Brexit was at least partially to blame for this while also facing a significant reduction in demand across the ever-important Chinese market. The business also admitted that their continued focus on diesel engines in their new line-up of cars had hurt their bottom line.
That said, the company was able to storm ahead of the competition this year beating Audi and Mercedes to the punch with the new i-Pace as an all-electric offering. The i-Pace was produced in Australia so the new plan is a huge win for the UK and the economy as a whole. The company also has plans to build a massive battery plant at Hams Hall in North Warwickshire.
A Clear Sign
The new funding and support offered by the UK government is a clear sign that they do intend to honour pledges regarding a new commitment to EVS and reduced emissions. As well as this, the government is clearly already thinking about how to secure exports regardless of the outcome of Brexit in several months.
If you are interested in learning more about the XJ or the rest of Jaguars planned line-up then Heritage Jaguar are the ultimate source! Established in 1996, we’re the fastest-growing automotive dealership group throughout South West England and are proud representatives of Jaguar Cars.