GE Capital agrees loan with Jaguara

JAGUAR Land Rover (JLR) yesterday secured a &pound;170m working capital facility from GE Capital.<br /><br />The five-year loan will help the money-losing car company, owned by India&rsquo;s Tata Motors, as it is struggles in the global financial downturn.<br /><br />The loan will be drawn down as soon as vehicles are made in its three UK production lines.<br /><br />It will boost the working capital for Jaguar by shortening the 30-to-40-day gap it has to wait between producing cars and delivering them to dealerships.<br /><br />&ldquo;We are talking to several other European carmakers about a similar facility, but as far as we know, this is the first of its kind,&rdquo; Rich Green, chief executive officer of GE Capital&rsquo;s distribution finance business said.<br /><br />&ldquo;We are pleased that our funding plans have further progressed and welcome the confidence shown by GE Capital in the Jaguar Land Rover business,&rdquo; said JLR&rsquo;s chief financial officer Ken Gregor. <br /><br />Tata has injected more than &pound;1.2bn into the firm to cover losses since buying the businesses from Ford last year.<br /><br />It has cut spending and production, and last month unveiled plans to close one of its two Midlands-based plants as part of its restructuring.<br />