Industry News
Tata won't be accepting governments electric car loan
30th November 2009
The Indian conglomerate Tata has passed on a £10m loan from Lord Mandelson for a technical
centre in the Midlands.
Business secretary Mandelson confirmed the loan last month, in a bid to back Tata’s research into electric cars. The money was
awarded as part of his Automotive Assistance Programme (AAP), a scheme that was designed to help the car industry over the
worst of the recession and foster investment in new technology.
Tata, the owner in Britain of Jaguar
Land Rover, has reportedly told the government that it doesn't want the money because
they can source the loan from commercial lenders with better terms.
This year Tata and Mandelson were involved in tortuous negotiations over aid for Jaguar Land Rover. Tata, which bought the
car maker from Ford last year for £1.3 billion, asked the government for a £500m loan guarantee when vehicle sales slumped.
After lengthy talks, Tata eventually decided not to accept a government offer, saying it could find better terms
elsewhere.
News Headlines
