UK Government Steps In With £1.5bn Loan to Save JLR After Cyberattack
The UK government has stepped in to support Tata-owned Jaguar Land Rover (JLR) after a cyberattack forced the carmaker to temporarily halt production at its plants worldwide. The disruption has put small suppliers at risk of running out of cash within a week and threatened thousands of jobs. In response, the government has announced a £1.5 billion loan guarantee to stabilise the sector and safeguard employment.
The cyberattack affected JLR's operations in the UK, Slovakia, Brazil, and India, disrupting its wider manufacturing network. The company operates three factories in the UK alone, producing around 1,000 cars per day, which underpin livelihoods in the Birmingham area and Liverpool. The UK's Business Minister Peter Kyle condemned the attack as an assault on an iconic British brand and the world-leading automotive sector.
The loan guarantee is designed to protect JLR and the UK's automotive ecosystem. It aims to restore confidence, provide liquidity for affected vendors, support the supply chain, and safeguard skilled employment nationwide. The loan will be provided by Lloyds Bank and backed by UK Export Finance, with repayment over five years. Small suppliers, warned they could run out of cash within a week due to the crisis, are being actively supported by the government to stabilise the sector and accelerate JLR's recovery.
The £1.5 billion loan guarantee is expected to help safeguard skilled jobs across the industry and accelerate the recovery of output. By supporting JLR and its supply chain, the UK government aims to protect an iconic British brand, the world-leading automotive sector, and the livelihoods of thousands of people.
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