Jaguar Land Rover (JLR) is hoping to be awarded a £1 billion loan from the government in order to keep its head above the water, it has been reported.
The company has cited a lack of car sales and difficulty in finding credit for the problems it is currently facing but, interestingly, refers to the importance of its supply chain as a bargaining tool with the government.
Richard Lambert, the director general of the Confederation of British Industry (CBI), backed the calls for a short-term loan, stating: "The credit crunch is having an increasing impact on cashflow and inventory finance across industry.
"Wholesale vehicle finance plays a critically important role in the motor industry supply chain and the CBI backs the SMMT in its proposals to improve liquidity in this and other areas."
The supply chain for the car industry is incredibly large, and needs to be handled carefully.
Any company can improve the standing of its own supply chain though, in order to save costs and increase efficiency.
To do so, contracting a third-part supply chain management company could be the wisest choice.
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