Jaguar denies breakdown in talks

Jaguar Land Rover and the British government both insisted rescue talks for the stricken motor firm were ongoing today despite reports the company’s Indian owners had rejected conditions.

Tata is ready to cease discussions due to what it sees as unreasonable demands from the Treasury, according to several reports.

But a spokesman at Jaguar insisted the firm – which is owned by Tata – was unaware of any breakdown in talks.

He said: “This has not come from anyone and it is as much as a surprise to us as it is to you.

“We have always said the talks would be difficult but they are ongoing.”

A British Department for Business spokesman added it was the Government’s duty to protect taxpayers money.

He added: “The government wants to see JLR safely through difficult trading times and to provide stability for the company and its employees. We regard JLR as a viable company with good long term prospects.

“That is why the government is having confidential discussions with JLR and its parent company over both short and long term financing and business plans. These negotiations are continuing.

“The primary financing responsibility rests with the parent company, Tata. We have been actively encouraging them for the last six months to put together a long-term funding package.

“In parallel we have been talking to banks on their behalf, have appointed financial advisers to assist and we are prepared to guarantee loans from the European investment bank on the right terms.

“Any government financial assistance must, of course, protect taxpayers’ money. But on this basis we are prepared to help although not on any terms.”