UK Wants To Bail Out Jaguar. Financial Times Hates It. With A Vengeance

Bertel Schmitt
by Bertel Schmitt
uk wants to bail out jaguar financial times hates it with a vengeance

The Financial Times (sub) is pissed. Pissed at Peter Mandelson, Britain’s business secretary, and his planned bail-out of Jaguar Land Rover. Forgetting the old school of not mixing reporting with opinion, the FT pulls out the flame thrower and blasts away: “It is hard to imagine a less deserving candidate. The luxury carmaker fails the public interest test on two key grounds. First, its products are of questionable social utility. For the government to allocate scarce funds to prop up the production of the 4.2 Litre V8 Petrol Supercharged Jaguar is a nonsense. It has a top speed of more than 150mph, emits 299g of carbon dioxide per kilometre and costs about three times the average annual wage. True, the UK car industry employs 190,000 people directly and supports several hundred thousand more once components and retailing are taken into account. But if Mr Mandelson wants the government to underwrite this £50b industry, he should harness such public funds as are available to develop the green cars of the future, not pander to vested interests.”

Hmmm. Let us remind you: This is not a rabid blog. This is the venerable Financial Times. We kid you not. Would the pink Financial Times be so ferocious if Land Rover and Jaguar still be a company that’s firmly in British hands? We guess not. The FT seems to have issues with the current owners of Land Rover and Jaguar, who happen to sit in one of Britain’s old and long departed crown colonies. After refilling the flame thrower, the FT launches an incendiary attack in the easterly direction:

“The second reason Mr Mandelson should refuse to bail out JLR is that Tata Motors, the Indian company that paid $2.3 b for it, is capable of doing so itself, if it wishes. Tata Motors, let it not be forgotten, is a subsidiary of Tata Group, one of the wealthiest companies on the subcontinent, with revenues of $62.5b and profits of $5.4b last year. The argument that thousands of jobs are at stake is weak: sectors employing many more, such as retail, receive no special treatment. If job protection starts to drive government policy, then the UK would bar Tata Consulting Services, a sister company, from offering the type of business process outsourcing services that have sucked back-office jobs to India in their hundreds of thousands during the past decade. But that would be nutty. Manufacturers are now leaner precisely because they now manage their inventory, process warranty claims and order spare parts through TCS’s offshore centres. The simple truth is that Tata Motors overpaid for a trophy asset with poor prospects. It must sort it out itself.”

Take that, Tata. If you don’t have the money, go back to elephants.

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  • Bobbysirhan These prices will make more sense by the end of July.
  • Kcflyer It fits perfectly in the you will have nothing and be happy agenda. Eliminate affordable transportation for the middle class. The ultra rich will have stuff like this.
  • SCE to AUX That green color works on a Jeep or a Telluride, but not on a Polestar 2.
  • Kcflyer yep, surprised the clowns in the Senate blocked her. Being completely unqualified for the job has not stopped any appointee by this administration or any other. She must have pissed off someone in the donor class.
  • Chris P Bacon "It is worth noting we’ve found through our own personal testing that some Stellantis PHEVs demand lighting the internal combustion fires in certain weather conditions even if the battery has ample charge, a trait worth keeping in mind if one lives in the snow belt."It's also worth noting that my Jeep dealer applied a software update to my Wrangler 4xe that took care of this issue.