The government has agreed to support Jaguar Land Rover (JLR) suppliers with a £1.5 billion loan after the company was recently hit by a widely-reported cyber attack.
The guarantee, announced by recently-appointed Business Secretary Peter Kyle, is expected to give certainty to the manufacturing giant’s supply chain.
It comes after the company had to shut down its UK operations due to the incident, which occurred at the end of last month, with production reportedly not set to restart until at least October 1st.
The loan from a commercial bank, backed by the Export Development Guarantee (EDG) provided by export credit agency UK Export Finance, will be paid back over five years and will bolster JLR’s cash reserves.
With plants in Solihull and Wolverhampton in the West Midlands, plus Halewood in Merseyside, the business is one of the UK’s largest exporters and a major employer, with a workforce of 34,000 directly in its operations in the country.
It also operates the largest supply chain in the UK automotive sector, much of it made up of SMEs, and employing around 120,000 people.
JLR cyber attack: Ben offers support to the thousands affected
This support follows a visit by the Business Secretary and Industry Minister to JLR’s Gaydon headquarters and JLR sunroof manufacturer Webasto this week to meet senior leaders, workers and members of its supply chain.
“This cyber-attack was not only an assault on an iconic British brand, but on our world-leading automotive sector and the men and women whose livelihoods depend on it,” said Kyle.
“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.
“We’re backing our automotive sector for the long term through our modern Industrial Strategy and the landmark trade deals we’ve signed to boost exports, as part of our Plan for Change.”
Chancellor of the Exchequer, Rachel Reeves, added: “Jaguar Land Rover is an iconic British company which employs tens of thousands of people – a jewel in the crown of our economy.
“Today we are protecting thousands of those jobs with up to £1.5bn in additional private finance, helping them support their supply chain and protect a vital part of the British car industry.”
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