The UK Government will underwrite a £1.5 billion loan guarantee to Jaguar Land Rover (JLR) as the country’s largest carmaker struggles with a production shutdown following a major cyber attack.
JLR was forced to halt operations at its UK factories after being targeted by hackers on August 31, leaving production suspended until at least October 1. The disruption has severely affected the company’s vast supply chain, raising fears that smaller suppliers could face collapse without urgent financial assistance.
The loan, sourced from a commercial bank, will be supported by the Government under the Export Development Guarantee (EDG) scheme, which is designed to help UK exporters. Repayable over five years, the financing will bolster JLR’s cash flow and enable it to continue paying suppliers that have been hit hard by the prolonged shutdown.
Business Secretary Peter Kyle described the attack as both a strike against ‘an iconic British brand’ and a threat to the wider automotive sector. “Following our decisive action, this loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside, and throughout the UK,” he said.
Chancellor Rachel Reeves also underscored the importance of the move, calling JLR “a jewel in the crown of our economy” and highlighting the need to protect thousands of jobs linked to the brand.
JLR operates the largest supply chain in the UK automotive sector, which employs around 120,000 people, many of them in small and medium-sized enterprises. Earlier this week, Mr Kyle met with workers and managers at Webasto, a sunroof supplier to JLR, as concerns mounted over the future of smaller component producers.
Government ministers have been in daily contact with the company and cyber experts as JLR attempts to restore operations. The Conservatives previously signalled support for emergency financial measures, while opposition figures, including shadow business secretary Andrew Griffith, have urged the Government to consider new cyber insurance schemes in response to the attack.
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