Jaguar Land Rover (JLR) is taking the unusual step of giving banks detailed briefings about its expansion plans to ensure its UK suppliers receive a favourable hearing when seeking loans to buy new machinery.
The initiative, led by operations director Alan Volkaerts, will see JLR set out the car components it expects to purchase to give banks reassurance that suppliers will be able to repay loans from the additional sales.
It has also emerged that Tata Capital, the corporate and consumer finance business operated by JLR's owners Tata Sons Limited, is evaluating building a presence in the UK market and may focus on backing advanced manufacturing companies.
Mr Volkaerts is due to brief 22 bankers operating in the Midlands within a fortnight about JLR's plans for expansion at its plant in Solihull and Wolverhampton, where a £400m engine plant is to be constructed.
The event has been organised by Paul Heaven from Blue Sky Corporate Finance as part of efforts by the Birmingham Local Enterprise Partnership to improve finance for Midlands automotive suppliers.
"It is quite clear on their part what they want to achieve," said one person familiar with the bank briefing plans. "When the supplier goes into the bank and says we need to tool up, the bank and its bankers know about it.
He added: "It is something we should encourage more original equipment manufacturers [OEMs] to do. The OEMs being very clear about what their plans are will help suppliers secure finance."
JLR has issued more than £2bn-worth of supply contracts for the Range Rover Evoque to more than 40 companies in the UK. Under chief executive Ralf Speth and Tata chairman Ratan Tata, JLR is investing £1.5bn a year in new products and to drive production at its three Midland plants to 500,000 vehicles a year.
Tata Capital's plans are understood to be at an early stage but The Telegraph has learnt that its London office is in discussions with the Business Department about opportunities for its expansion into the UK.
Source: The Telegraph
 |
| JLR has issued more than £2bn-worth of supply contracts for the Range Rover Evoque to more than 40 companies in the UK |
The initiative, led by operations director Alan Volkaerts, will see JLR set out the car components it expects to purchase to give banks reassurance that suppliers will be able to repay loans from the additional sales.
It has also emerged that Tata Capital, the corporate and consumer finance business operated by JLR's owners Tata Sons Limited, is evaluating building a presence in the UK market and may focus on backing advanced manufacturing companies.
Mr Volkaerts is due to brief 22 bankers operating in the Midlands within a fortnight about JLR's plans for expansion at its plant in Solihull and Wolverhampton, where a £400m engine plant is to be constructed.
The event has been organised by Paul Heaven from Blue Sky Corporate Finance as part of efforts by the Birmingham Local Enterprise Partnership to improve finance for Midlands automotive suppliers.
"It is quite clear on their part what they want to achieve," said one person familiar with the bank briefing plans. "When the supplier goes into the bank and says we need to tool up, the bank and its bankers know about it.
He added: "It is something we should encourage more original equipment manufacturers [OEMs] to do. The OEMs being very clear about what their plans are will help suppliers secure finance."
JLR has issued more than £2bn-worth of supply contracts for the Range Rover Evoque to more than 40 companies in the UK. Under chief executive Ralf Speth and Tata chairman Ratan Tata, JLR is investing £1.5bn a year in new products and to drive production at its three Midland plants to 500,000 vehicles a year.
Tata Capital's plans are understood to be at an early stage but The Telegraph has learnt that its London office is in discussions with the Business Department about opportunities for its expansion into the UK.
Source: The Telegraph
No comments:
Post a Comment