Jaguar Land Rover is looking for a government loan to help it recover from the damage done by a slowdown in sales as a result of the coronavirus crisis.
The is in talks over a £1 billion loan through the government's emergency lending scheme, according to Bloomberg and Sky News. It is also looking for tax breaks and research grants which could bring the total amount it is asking for closer to the £2 billion mark. However, a spokesperson told Sky News that the higher figure was "inaccurate and speculative," and that the final amount was still being worked out.
Jaguar Land Rover and coronavirus
The carmaker employs 38,000 in the UK, with 20,000 of those being furloughed during the lockdown period. Its Solihull plant in the Midlands resumed production on May 18, while its Halewood factory on Merseyside will reopen on June 8. Its Chinese operations got back up and running in mid-February after a brief shutdown.
Despite signs of a return to normality in a production sense, there is doubts over how the market will look when restrictions are lifted, with demand for luxury vehicles set to be low.
What's more, the company could see its profit margin hit by as much as three percent for the 2020 fiscal year with its earnings before interest and tax could be lower than anticipated because of the decrease in sales brought about by the crisis, putting a severe dent in the company's turnaround plans.