The Truth About Cars » GE Capital http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Tue, 21 Oct 2014 13:18:49 +0000 en-US hourly 1 http://wordpress.org/?v=4.0 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » GE Capital http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com GE Capital Backs Jaguar/Land Rover http://www.thetruthaboutcars.com/2009/11/ge-capital-backs-jaguarland-rover/ http://www.thetruthaboutcars.com/2009/11/ge-capital-backs-jaguarland-rover/#comments Mon, 16 Nov 2009 19:43:00 +0000 http://www.thetruthaboutcars.com/?p=335705 According to the Financial Times General Electric’s in-house virtual bank, GE Capital, has agreed to give JLR (Jaguar-Land-Rover) new financing secured by vehicles as they come off the production lines. Cash flow wise, JLR will get money almost instantly upon completion of production rather than later on down the road when the dealers and/or their […]

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Private Capital? Really?

According to the Financial Times General Electric’s in-house virtual bank, GE Capital, has agreed to give JLR (Jaguar-Land-Rover) new financing secured by vehicles as they come off the production lines. Cash flow wise, JLR will get money almost instantly upon completion of production rather than later on down the road when the dealers and/or their banks pay for the vehicles. GE Capital says it looks forward to helping other European automakers free up working capital by borrowing against “underutilised assets”. This new kind of financing gives companies a powerful incentive to build cars for the “Sales Bank” even if no firm dealer commitments are in hand. Rut Row!

JLR has been a massive money pit for Tata so far. “Tata has pumped more than £1.2bn into JLR to cover losses since buying the businesses from Ford Motor for $2.3bn last year.” Besides the new GE money, JLR borrowed £500m from a group of banks last month and continues jawboning the EU and UK governments for mo’ money. Meanwhile, JLR has already promised to shut down at least one of its three UK factories. Ford seems to have sold at the last possible good time. Speaking of which, not much news about the prospective Volvo sale in some time, eh?

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