The British government is guaranteeing a £1.5 billion loan to Jaguar Land Rover (JLR) to keep the supply chain going. This is necessary now that the car manufacturer’s production has come to a standstill following a cyberattack.
This was reported by the BBC. The loan is being provided by a commercial bank and covered by the Export Development Guarantee, a mechanism that supports British companies with international activities.
According to Minister of Economic Affairs Peter Kyle, the guarantee serves to protect jobs in the West Midlands and Merseyside, among other places. And to provide certainty to suppliers. He emphasized that the facility not only helps JLR, but also the chain of suppliers. Finance Minister Rachel Reeves said the measure secures thousands of jobs. In this way, the government wants to protect an important part of the British automotive industry.
JLR’s production has been at a standstill since August 31 following a hack by the Scattered Lapsus$ Hunters group. These criminals have also attacked other British companies in the past. The group, owned by India’s Tata Motors, normally builds around 1,000 cars a day at three factories in Solihull, Wolverhampton, and Halewood. Due to the prolonged shutdown, employees have been at home since September 1, with no return date in sight.
Shutdown costs £50 million per week
JLR has around 30,000 direct employees in the United Kingdom. In addition, around 100,000 people work in the supply chain. Smaller companies in particular are at risk of going bankrupt now that JLR is no longer placing orders. The shutdown is estimated to cost JLR at least £50 million per week. The loan is intended to ensure that suppliers receive payment and that the manufacturer can strengthen its cash position. Repayment will take place over five years.
A JLR spokesperson said that teams are working closely with cybersecurity specialists, the NCSC, and the police to enable a safe restart. According to the company, the recovery program is in full swing and employees, dealers, and suppliers are being kept regularly informed.
The opposition supports the measure. However, they also express criticism. Conservative and Liberal Democrat spokespeople believe that the government responded too slowly. They are calling for additional measures, including a reinsurance scheme for cyber attacks. And they want an emergency scheme for affected employees.