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.