JLR Secures £2B Funding to Revive Production After Cyberattack
Jaguar Land Rover (JLR) has secured a £2 billion funding facility from major banks to bolster its finances and support its supply chain, as it prepares to restart production following a cyberattack. The move comes amidst warnings from Midlands business leaders about a cash crisis among suppliers, with many facing uncertainty about future sales.
The funding, provided by Standard Chartered, Citigroup, and Mitsubishi UFJ Financial Group, is part of JLR's effort to stabilise its supply network and prevent disruptions as production resumes in phases from Monday. The initiative involves JLR lending directly to its first-tier suppliers through an invoice financing facility, offering immediate cashflow relief. This will allow suppliers like Evtec, Opmobility, and WHS Plastics, which employ around 6,000 temporarily furloughed workers, to submit invoices for immediate payment rather than waiting weeks for standard remittance.
The crisis highlights the vulnerability of the UK automotive supply chain, heavily dependent on just-in-time manufacturing and tight margins. JLR, which employs 34,000 people and supports around 120,000 more across its UK supply chain, is injecting up to £500 million into the chain to prevent insolvencies among parts makers. This comes as the government's proposed £1.5 billion rescue guarantee remains unsigned, leaving suppliers uncertain about funds.
JLR's £2 billion funding facility and £500 million supply chain support aim to restore stability and prevent insolvencies as production resumes. However, the unsigned government guarantee leaves suppliers in limbo, underscoring the urgent need for clarity and action to secure the UK automotive industry's future.
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