Britain has announced a £1.5 billion loan guarantee to support Jaguar Land Rover (JLR) and its supply chain after the luxury carmaker was forced to halt production due to a cyberattack that has disrupted operations for nearly a month.
JLR, which is owned by India’s Tata Motors, operates three factories producing roughly 1,000 vehicles per day, sustaining thousands of jobs around Birmingham and Liverpool. The UK government had been exploring ways to assist the company and its suppliers, some of which reportedly had only a week of cash reserves left before running out.
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Loan Guarantee Aims to Shield JLR Suppliers and Workforce
A recent survey indicated that some suppliers had already begun reducing staff hours or making redundancies due to the production halt. Business Minister Peter Kyle described the cyberattack as “not only an assault on an iconic British brand, but on our world-leading automotive sector,” adding, “This loan guarantee will help support the supply chain and protect skilled jobs.”
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The loan will be privately financed but guaranteed by Britain’s export credit agency, UK Export Finance, and is expected to unlock £1.5 billion in support for JLR’s network of suppliers. Tata Motors, as the Indian parent company, has been involved in coordinating with both the UK government and the carmaker to stabilize operations and ensure the protection of jobs during this disruption.
With additional input by GVS Intl Desk