The UK government on Sunday said it will support Tata Motors-owned luxury carmaker Jaguar Land Rover (JLR) with a guarantee for a £1.5 billion (approximately Rs 17,826 crore) loan to ensure certainty to its supply chain following the recent cyberattack.
This comes as JLR continues to grapple with the financial and operational impact of a cyberattack that hit production at its manufacturing facilities worldwide from August 31. The BBC recently reported that the production shutdown at multiple JLR facilities could cost approximately £5 million daily in lost profits.
The automotive manufacturer was forced to shut down its computer systems and send workers home from plants in Solihull, Halewood, and Wolverhampton last week, with no confirmed date for production to resume.
According to a government release, JLR has secured a five-year loan from a commercial bank, supported by a guarantee from UK Export Finance’s Export Development Guarantee (EDG) program. This funding will boost JLR’s cash reserves, enabling it to assist its supply chain, which has been severely affected by the recent shutdown.
“Following our decisive action, this loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK,” said Business and Trade Secretary Peter Kyle.
JLR operates plants in Solihull, Wolverhampton and Halewood, directly employing 34,000 people. The company also manages the UK’s largest automotive supply chain, which includes a vast number of small and medium-sized enterprises (SMEs) and supports approximately 120,000 jobs.
Chancellor of the Exchequer Rachel Reeves said: “Today we are protecting thousands of those jobs with up to £1.5 billion in additional private finance, helping them support their supply chain and protect a vital part of the British car industry.”