Government gives Jaguar Land Rover £27m for green 4X4

The UK government has offered Jaguar Land Rover a grant of up to £27m towards the production of a new "green" 4x4 model.

Last Updated: 1:21PM GMT 11 Mar 2009

Jaguar Land Rover will invest around £400m to produce a new fuel and CO2 efficient model
The grant is separate from the £2.3bn financing package being discussed today between the Government and motor manufacturers and parts suppliers. It is also not linked to talks between Jaguar Land Rover and the government over support to ensure the long-term future of the Indian-owned car maker. JLR is believed to be seeking £500m from the state.
JLR is looking to invest around £400m in the project that would help safeguard jobs and lead to the production of a new fuel and CO2 efficient model. The company said it expected the "green" vehicle to do 60 miles to the gallon.

The government is supporting the project with up to £27m under the Grant for Business Investment scheme.
The vehicle would be designed, developed and produced in the UK, securing production and employment at the company's Halewood facility, where it would be built. The company hopes to launch the car in 2011.
Business Secretary Peter Mandelson said: "The Government is fully committed to supporting the UK automotive industry as it moves to a lower carbon future. This project aims to design and build a greener car in the UK, safeguarding vital skills and technologies.
“The project would secure production and employment at the Halewood facility and maintain the design capability for Jaguar Land Rover in the UK. This is an important investment for the future and we are delighted to be able to offer this grant support.”
The offer will need European approval.