Jaguar Land Rover gets 170-million-sterling loan-FT
LONDON Nov 16 (Reuters) - Jaguar Land Rover is expected to announce on Monday that it has secured a 170-million-pound ($282.5 million) working capital facility from GE Capital [GECAIC.UL], the Financial Times newspaper said.
The five-year loan would help the money-losing car company, owned by India's Tata Motors (TAMO.BO), as it is struggling in the global financial downturn.
The loan will be drawn down as soon as vehicles are made in its three UK production lines, the paper said.
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, the paper said.
"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," Rich Green, chief executive officer of GE Capital's distribution finance business said in the Financial Times.
No one at Jaguar Land Rover was immediately available to comment. (Reporting by Sharon Lindores; Editing by Jan Paschal) ($1=.6017 Pound)