Credit crunch effecting Jaguar Land Rover

Jaguar Land Rover has been in negotiations with the British government who could possibly be guaranteeing a large amount of loans to our beloved Land Rover product line. These negotiations have been in progress for a while now, and it seems the only problem is that the British government wants to gain too much control of the company. The British government feels it owes it tax payer’s the duty of making sure that the tax money is invested properly and that the companies who receive this money spend it wisely. However, in the governments attempt to help “Protect” tax payer’s money they could actually be making a mistake by trying to assume too much control of a company in an industry that they have no experience in.

When considering how to spend tax payer money, why not invest in a solid company who is providing thousands of jobs. Let’s not forget that if thousands of jobs suddenly disappear then the government will no longer be getting tax money from those who used to be working, and those who used to be working now spend less money, and into a downward spiral we go. Jaguar Land Rover is a fantastic company with an ever increasing future. Both companies have some great new products heading into 2010. The 2010 line up for both Jaguar and Land Rover have some of the nicest luxury vehicle’s one could dream of.

Jaguar Land Rover is a healthy viable business. Jaguar Land Rover has been and will remain a profitable business. Jaguar Land Rover made £327 million operating profit in 2007 and £310 million operating profit in the first half of 2008. This is not something that you read about everyday in some news articles. In fact, Land Rover’s real issue is not the fact that they are going under. Companies that fail do not produce profit, and Jaguar Land Rover has tens of years of positive cash flow and employs thousands of proud employees. Jaguar Land Rover is not a failing business, it just needs the British Government to guarantee loans to them so that they can refinance that loan that they took to purchase the company from Ford.

Remember to check out LROffroad.com, “The Place for Land Rover Enthusiast’s”