The folks in Detroit aren't the only ones in trouble, as Europe's car industry is also feeling the global economic pinch in a big way. PSA Peugeot Citroen recently accepted a €3 billion loan from the French government, and now Jaguar Land Rover is about to receive its first cash injection.
The European Investment Bank is reportedly on the verge of approving a £270 million loan for Jaguar Land Rover, which will likely be earmarked for green-car development.
While this loan will undoubtedly help the cash-strapped JLR, the company's Indian owner Ratan Tata says a further £500 million needs to be secured to prevent layoffs and plant closures.
Tata is apparently seeking that second loan of £500 million loan from the British government. If successful, and that is far from certain, it would likely be drawn from the £2.3 billion fund the Government has set up to support the British car industry.
A decision has yet to be made on the government-sourced loan, but some pundits says the approval of such a loan is unlikely, given it would constitute taxpayer money being used to prop up a foreign-owned business.
However there is a strong case to be made for the loan, as, Indian-owned or not, JLR employs a sizable 15,000-strong workforce in the UK. (No doubt each of them are awaiting the Government's decision with baited breath.)
But £773 million, the total sought, is one helluva lot of cashola for a small-ish carmaker. Such is the size of hole in the global industry... hmm, better watch this space.