Jaguar Land Rover asking for a loan....Pause on EV development

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Petrol Pete

Petrol Pete

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JLR are asking for a £1 billion (some sources say £2B) state loan to stay afloat while stopping all EV activity/production. At the same time as TATA steel (who own JLR) are asking for a £500M loan add to that McLaren and Virgin Airways...

Honda were supposed to fire up part of the Swindon plant on Monday, that seems not to have taken place. Bearing in mind it is shutting up for good June/July next year...or sooner if this carries on.

Clothing retailers snapping up warehouse space to keep all their unsold seasonal stock hoping to sell it next summer.

Hertz car rental (worldwide) files for bankruptcy...plenty used cars to flood the market soon then, or go in the crusher because no one can afford to buy them.

It's time to fire up the money printing press methinks.
 
Petrol Pete said:
JLR are asking for a £1 billion (some sources say £2B) state loan to stay afloat while stopping all EV activity/production. At the same time as TATA steel (who own JLR) are asking for a £500M loan add to that McLaren and Virgin Airways...

Honda were supposed to fire up part of the Swindon plant on Monday, that seems not to have taken place. Bearing in mind it is shutting up for good June/July next year...or sooner if this carries on.

Clothing retailers snapping up warehouse space to keep all their unsold seasonal stock hoping to sell it next summer.

Hertz car rental (worldwide) files for bankruptcy...plenty used cars to flood the market soon then, or go in the crusher because no one can afford to buy them.

It's time to fire up the money printing press methinks.
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Hertz have not filed for bankruptcy.
 
Steveml63 said:
I think they have filed for Chapter 11 bankruptcy protection in the US
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They have and it's really not unusual, many big firms have done the same.

See:

Apple
Virgin Media
Texaco
Chrysler
General Motors
 
Car manufacturers are begging for money cos they’ve been closed for a few weeks and at the same time their are tens of 1000’s of unsold vehicles sitting on airfields etc all over the country!!

I’m very confused.
 
I am in the throws of trying to buy an ex-demo but anyone would think the stealer doesn’t want my money. They are dragging their heels like I’ve never experienced before. I’m not bothered as I haven’t even managed to sit in the car let aloan test driven it. They took a 1k deposit, well card details, the money hasn’t left my account so the car is reserved for me. Desperate for sales doesn’t ring true in my experience
 
addbuyer said:
I am in the throws of trying to buy an ex-demo but anyone would think the stealer doesn’t want my money. They are dragging their heels like I’ve never experienced before. I’m not bothered as I haven’t even managed to sit in the car let aloan test driven it. They took a 1k deposit, well card details, the money hasn’t left my account so the car is reserved for me. Desperate for sales doesn’t ring true in my experience
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That will be down to the dealer, or maybe even the salesperson, rather than the manufacturer.
 
Darrell said:
Aren’t they connected?
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Yes. With a very small number of exceptions, manufacturers don’t sell cars to the public.

The vendor’s responsiveness Is more to do with the sales person than the dealership, and not at all to do with the manufacturer.

The appetite to do a deal is split between sales person and dealership (but not manufacturer) and you must get through (or around) the sales person before you get to anyone else in the dealership to do that deal.

In my experience, a good or bad buying experience is down the the sales person. A bad sales person can cast a very large shadow over an otherwise great car/deal, but a great sales person can out shine or put right anything which isn’t ideal.
 
Bobby Dazzler said:
Yes. With a very small number of exceptions, manufacturers don’t sell cars to the public.

The vendor’s responsiveness Is more to do with the sales person than the dealership, and not at all to do with the manufacturer.

The appetite to do a deal is split between sales person and dealership (but not manufacturer) and you must get through (or around) the sales person before you get to anyone else in the dealership to do that deal.

In my experience, a good or bad buying experience is down the the sales person. A bad sales person can cast a very large shadow over an otherwise great car/deal, but a great sales person can out shine or put right anything which isn’t ideal.
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So why are JLR and other manufacturers asking for govt (our money) handouts?
 
Bankruptcy and Bankruptcy Protection are two different things.

Filing for Chapter 11 means that they are in financial difficulties, but at the same they wish to continue trading and hope to emerge from their difficulties.

They are asking the courts to grant then temporary protection from creditors so that they can't be made bankrupt in the interim.

Under Chapter 11 protection they will need to show that they have a viable restructuring plan that will allow the Chapter 11 protection to be lifted at a later stage.
 
DrFeelgood said:
They have and it's really not unusual, many big firms have done the same.

See:

Apple
Virgin Media
Texaco
Chrysler
General Motors
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And also Delphi Automotive (back in 2001).
 
If one or two 'big players' were filing for Chapter 11 it might sound OK, but just look at the list. What Hertz do for a living is pretty much doomed if we use the model that cars are (in the main) hired out to business and holiday travellers, by the time that market is back to normal - probably never - bankruptcy looks likely unless they can diversify, diversify into what ?

I hope they can all 'restructure' and save tens of thousands of jobs world wide. But it's not looking good.
 
Darrell said:
So why are JLR and other manufacturers asking for govt (our money) handouts?
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It’s not because the dealer which addbuyer is negotiating with are dragging their feet with a potential sale.
 
Bobby Dazzler said:
It’s not because the dealer which addbuyer is negotiating with are dragging their feet with a potential sale.
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I don’t really understand your last comment but as I see it this is what seems to be happening here.

Certain manufacturers eg JLR have got their hands out for govt money.

We have tens of 1000s of unsold cars eg JLR parked up in airfields and other plots. These cars are unsold.


That to me means that manufacturers are building way too many cars.

They then want govts to bail them out!!!
 
Darrell said:
Car manufacturers are begging for money cos they’ve been closed for a few weeks and at the same time their are tens of 1000’s of unsold vehicles sitting on airfields etc all over the country!!

I’m very confused.
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It's pretty simple. If you've ever been a supplier to an auto manufacturer, you'll know that their payment terms are very generous towards them. Sometimes up to 6 months meaning that they have usually long sold a component before they've paid for it. If cars have been sitting, the bills are now due and they don't have the money to pay for it.

Should they get a bail out? If they don't, it's not just them who will go under, they could take a lot of their suppliers down with them.

Furthermore, this is one of these situations where the government has effectively put a stop to commerce by ordering people to stay home. They're kind of on the hook. Unfortunately it's your money that they'll be using.
 
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