GE Caps-JLR $250 mn financing deal first of its kind

LONDON: Necessity could well be the mother of innovation. Tata Motors and Jaguar Land Rover have tied up $250 million (£170 million) in distribution Buying pre-owned luxury cars makes sense
World's fastest cars
financing from GE Capital, in a unique financing deal, a first of its kind in Europe. ( Watch )

GE Caps has undertaken to finance all new production of JLR cars from the time the cars leave the factory for up to 90 days, while the cars are in transit to dealers. Says Sean Neville, European business development director at GE Capital, who structured the deal for GE Caps: “While the cars are sitting in trucks, highways, and ships on their way to markets all over the world, they soak up cash like a sponge. We will squeeze the cash out and make it available to JLR.”

The deal, which will be announced on Monday, will help the maker of luxury brands access working capital, the funds used for the day-to-day operations such as paying suppliers.