The UK government is set to provide a £1.5 billion loan guarantee to Jaguar Land Rover (JLR) to support its suppliers, as ongoing cyberattacks disrupt production. Business Secretary Peter Kyle stated that loans from commercial banks are intended to protect jobs across the UK, especially in the West Midlands and Merseyside, where JLR has a significant presence.
JLR paused production for several weeks following a cyberattack on August 31, significantly impacting its operations and supply chain. The company employs around 150,000 people and relies on a large network of suppliers, many of whom are small businesses facing financial strain due to prolonged closures. The loan, facilitated by the Export Development Guarantee (EDG), aims to boost JLR’s cash reserves and help it tackle backlog payments to suppliers.
Currently, 700 suppliers have halted orders due to the production stoppage, estimated to cost JLR £50 million weekly. Union Unite views the government’s support as a vital step toward securing jobs and financial stability in the supply chain.
Both Prime Minister Rachel Reeves and Shadow Business Secretary Andrew Griffith advocated for swift action, emphasizing the importance of timely government support. The cyberattack was attributed to a group named Lapse Suspense Hunters, which has claimed responsibility for other recent attacks on retailers. JLR is collaborating with cybersecurity experts and law enforcement to ensure a safe return to operations.
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