Indian owner in Jaguar rescue move

The pressure has come off ministers to bail out struggling car maker Jaguar Land Rover (JLR) after its owners agreed to put "tens of millions" of pounds into the luxury car brand.

The cash injection from Indian firm Tata Motors, which bought the West Midlands-based manufacturer earlier this year, is to prevent a cashflow crisis that has threatened to drag the ailing firm under.

But the move is only a temporary respite for the Government as Tata said its support did not negate the argument that the UK Government should provide bridging loans and credit guarantees to help the company and the car sector as a whole through the current downturn in the economy.

Business secretary Lord Mandelson has come under increasing pressure to draw up a package similar to that announced by the US government last week.

The US decision saw nearly $17.4 billion (£11.7 billion) made available to American car-makers in the form of a loan to avoid the millions of job loses that would come from a collapse of the industry.

A spokesman for Lord Mandelson's Department for Business, Enterprise and Regulatory Reform said: "The Government doesn't have an open cheque-book to bail out ailing companies, but we are doing all we can to help businesses overcome the current challenges.

"Jaguar Land Rover have owners who are well resourced and have the first responsibility to sustain the companies they own."

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