IT IS yet another sign of the unprecedented economic times we are living in that the parent companies of car manufacturers Jaguar Land Rover and Vauxhall – who between them employ more than 4,000 people at Halewood and Ellesmere Port – are reduced to going cap-in-hand to the Government to plead for a loan.

It was not so long ago that these multi- national organisations, like banks, seemed awash with money. But it is a sure sign that nobody has remained unaffected by the current economic downturn that they are now in the position of a humble supplicant for emergency cash to keep them going through the hard times.

According to weekend reports, Jaguar Land Rover (JLR) is the latest big name to be in negotiations with the Government over a possible £1bn loan – just nine months after the car firm was bought by Indian conglomerate Tata from Ford for £1.7bn.

This comes on top of our report on Saturday over fears that Vauxhall’s Ellesmere Port plant could lose out to European rivals unless the Government stepped in with emergency funding.

The backdrop to this extraordinary situation could not be clearer: according to new Society of Motor Manufacturers and Traders (SMMT) figures, total car production fell by 25% in the UK last month – the lowest October level since 1991 – while commercial vehicle building slumped by 41%. The SMMT predicted further reductions in the coming months as firms scaled back production in response to falling demand.

Just as the Government took decisive action to prevent the banking system collapsing, it now needs to do the same to shore up our ailing motor industry, on which so many local jobs depend.

It cannot allow these great names to hit the wall, which would send shockwaves through the whole economy and which emergency financial assistance would help to prevent.