The UK government will support Jaguar Land Rover (JLR) with a £1.5 billion (approximately $2 billion) loan guarantee to sustain its supply chain after the company’s production was halted following a cyberattack, Reuters reports.
Production Halt Impacts
JLR’s production stoppage lasted nearly a month, and the government is exploring options to support the company and its suppliers. Some firms in the supply chain have warned of significant cash flow shortages.
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The Tata Motors-owned company operates three factories producing around 1,000 cars per day. This supports many jobs in Birmingham and Liverpool. A recent study shows that some local firms have reduced working hours or implemented layoffs.
Protecting Jobs
Secretary of State Peter Kyle stated: “The cyberattack is not only an assault on a prestigious British brand but also on the country’s automotive sector. These loan guarantees will help sustain the supply chain and protect jobs.”
JLR’s UK factories employ about 30,000 people, while roughly 100,000 others work in the supply chain. Some of these firms supply components exclusively to JLR, while others also work with other car manufacturers.
The loan will be funded privately and guaranteed by the UK Export Finance agency.
Photo: Financial Times
