UK Government Guarantees £1.5bn Loan to Jaguar Land Rover After Cyberattack
Jaguar Land Rover (JLR), the British automaker, has received a £1.5 billion loan guarantee from the UK government to stabilise its supply chain following a cyberattack. The loan, provided through UK Export Finance, aims to ease the impacts of the shutdown and support JLR's suppliers.
JLR operates three factories in Britain, producing around 1,000 cars daily. The recent cyberattack led to a production stoppage, with wholesale volumes dropping 24.2% and retail sales declining 17.1% in the latest quarter. The incident is part of a series of high-profile cyberattacks targeting major UK businesses this year.
Previously, suppliers were paid 60 days after invoicing, putting many smaller businesses at risk of financial distress. To mitigate this, JLR will offer up-front payments for components during the restart phase, scheduled for Wednesday. Production lines for the Range Rover and Range Rover Sport at the Solihull plant are also set to resume later this week. The government's loan guarantee aims to prevent a prolonged shutdown, which could significantly impact the UK's manufacturing output, given the sector's reliance on the auto industry. JLR estimates it lost around £50 million per week during the shutdown.
The £1.5 billion loan guarantee from the British government to Jaguar Land Rover is expected to help stabilise the company's supply chain and support its smaller suppliers. The restart of production this week is a crucial step in mitigating the financial losses incurred during the shutdown and preventing further disruption to the UK's manufacturing output.
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