- The government guarantee supports a new £625 million 5-year
loan from 12 commercial banks
- Jaguar Land Rover is one of UK’s largest manufacturers and a
major employer across the country, with total revenue of nearly
£20 billion in the last financial year
Jaguar Land Rover Automotive plc has received a £500 million
Export Development Guarantee which will support the research,
development and export of Battery Electric Vehicles,
International Trade Secretary said today (31
January).
UK Export Finance (UKEF)
guaranteed 80% of a new £625 million loan from 12 commercial
banks, under its Export Development Guarantee
(EDG) program
designed to drive major investments into UK exporters.
Backing electric car production in the UK is a key part of the
Prime Minister’s Ten Point Plan for a
green industrial revolution. The government is also directly
investing more than £850 million to develop the supply chain for
cleaner vehicles in the UK to ensure our auto industry remains
competitive for years to come and has supported over £2 billion
of commercial investment into the industry’s export capacity
through UKEF.
Jaguar Land Rover is one of the UK’s largest exporters and
employs over 28,000 staff based in the UK. Over 80% of the
vehicles built by Jaguar Land Rover in the UK are sold to the
world and three of its seven global technology hubs are based in
Manchester, Warwick & London. In 2020-21, the company sold
439,588 vehicles in 127 countries, with about 80% of its sales to
export markets outside the UK.
This loan will support Jaguar Land Rover’s plans to invest about
£2.5 billion a year, expected to reach £3 billion by March 2026,
to increase the number of Battery Electric Vehicles in its model
lineup under its Reimagine Strategy.
, Secretary of State
for International Trade said:
We are backing our ambitious net zero plans with more concrete
action. We want our carmakers to accelerate the production of
electric vehicles in the UK.
This deal from UK Export Finance will help Jaguar Land Rover
continue to sell the Best of British to the world, while creating
jobs, boosting manufacturing and levelling up across the UK.
Exports Minister, , said:
Jaguar Land Rover is one of Britain’s biggest car manufacturers.
It supports the livelihoods of thousands of people across the
country, and its success is underpinned by exports. UK Export
Finance has secured another major investment for the UK
automotive industry that will safeguard jobs and prioritise
sustainability.
Adrian Mardell, Jaguar Land Rover’s Chief Financial
Officer, said:
Jaguar Land Rover is pleased to have worked again with UK Export
Finance on this new EDG facility. This will
help support the significant investment in our transition to
offer a fully electrified product portfolio and to achieve our
target of net zero carbon emissions by 2039.
Jaguar Land Rover was previously the first UK company to
participate in UKEF’s
EDG programme in 2019 and has now received over £1
billion of loans under this programme. Since the last loan was
issued, Jaguar Land Rover has significantly accelerated its plans
for expanding its lineup of fully electric vehicles under its new
Reimagine Strategy with plans to offer new all-electric Jaguar
models from 2025 and six pure electric Land Rover variants over
the next five years.
