Jaguar Land Rover is seeking a government aid package to weather a collapse in car sales brought on by the pandemic, according to people familiar with the matter.
The UK’s largest auto manufacturer is in talks to borrow more than £1 billion ($1.2 billion) through the UK’s emergency coronavirus lending program, the people said.
JLR is also seeking tax breaks, research grants and other subsidies, which could bring the total value of the state support to more than £2 billion, one of the people said.
The full amount is still being negotiated and no decisions have been made. Owner Tata Motors Ltd. may be required to back part of the UK government loan to secure the funding, the people said.