Jaguar Land Rover Saved by £1.5B UK Loan After Cyberattack Halts Production
Jaguar Land Rover (JLR) has faced a significant setback following a cyberattack earlier this month. The attack forced the temporary shutdown of production at its plants across the UK, Slovakia, Brazil, and India, disrupting the wider manufacturing network. In response, the UK government has stepped in with a £1.5 billion loan guarantee to protect JLR and its supply chain, safeguarding jobs and restoring confidence.
The cyberattack, presumed to have occurred in August 2020, targeted JLR's operations, halting production at its three factories that produce around 1,000 cars daily. This pause in production has had a ripple effect, threatening the livelihoods of many in the Birmingham and Liverpool areas. UK's Business Minister Peter Kyle condemned the attack, describing it as an assault on an iconic British brand and the world-leading automotive sector.
The loan, to be provided by a commercial bank and backed by UK Export Finance, is designed to offer liquidity and support for JLR's supply chain. It is expected to unlock £1.5 billion of support, ensuring the survival of small suppliers who warned they could run out of cash within a week due to the crisis. The loan will be repaid over five years, providing JLR with the breathing space needed to recover and restore output. The government aims to safeguard skilled jobs across the industry and accelerate the recovery of the automotive ecosystem.
The £1.5 billion loan guarantee is a lifeline for JLR and its supply chain, protecting jobs and supporting the wider automotive sector. With repayment spread over five years, the loan provides the necessary time for JLR to recover from the cyberattack and resume normal operations. The UK government's intervention is crucial in safeguarding the future of an iconic British brand and the skilled workforce that supports it.
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