The U.K. government is widely reported to be preparing a provisional rescue package for auto manufacturers, but it is very reluctant to commit to any industrywide offer, saying it would set tough conditions for helping individual companies, especially since every big-name manufacturer is now foreign owned.
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But with auto sales down by a third, the government's business secretary, Peter Mandelson, has acknowledged he's considering helping luxury manufacturer Jaguar Land Rover, bought from Ford Motor Co. by India's Tata Motors Ltd. in June for £1.7 billion ($2.6 billion).
In an interview with the British Broadcasting Corp. Mandelson said: "I'm taking stock of these issues; I will form my own view of whether these are short-term financial issues or whether they're longer-term issues requiring greater financial restructuring."
But he said he would not be "bounced into a decision," adding there would be tough tests and no "open check book for companies needing help."
And pressed on the case of the Tata-owned brands, his comments echoed those of other government ministers. "The first and primary responsibility for any short of longer-term financing need or longer-term restructuring requirement rests with the owners of the company concerned, not with the government," he said. - Jonathan Braude
