Jaguar Land Rover (JLR) is getting some much-needed relief from the cyberattack that has crippled its operations, with the UK government underwriting a £1.5 billion loan guarantee to support the automaker’s suppliers.
The details: The £1.5 billion loan (roughly $1.7 billion U.S.), being issued from a commercial bank, is aimed at protecting jobs in the West Midlands, Merseyside, and across the UK, impacted by the August 31 cyberattack that forced JLR to pause vehicle production.
The loan will be underwritten through the Export Development Guarantee (EDG), a financial support mechanism focused on helping UK companies who sell overseas.
JLR will pay back the loan over five years, boosting the company’s cash reserves and enabling it to make a “backlog of payments” to its suppliers.
The automaker, which has built no cars this month, typically manufactures about 1,000 vehicles a day at its three factories in Solihull and Wolverhampton in the West Midlands, and Halewood in Merseyside.
What they’re saying: “This cyberattack was not only an assault on an iconic British brand, but on our world-leading automotive sector and the men and women whose livelihoods depend on it,” said the UK’s Secretary of State for Business and Trade, Peter Kyle (via The Guardian).
Peter Kyle
“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,” he added.
Why it matters: The government-backed loan provides a critical lifeline for JLR and its vast supply chain, helping to stabilize cash flow, protect thousands of jobs, and prevent deeper disruption across the UK auto industry and the company’s overall operations.
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Between the lines: A report by The Sunday Times indicates that JLR plans to reopen its engine manufacturing site in early October and resume production at its Wolverhampton facility on October 6. The automaker has yet to confirm the reports of its restart schedule, as it works to safeguard its operations.
JLR’s recovery strategy includes working with cybersecurity specialists, the National Cyber Security Centre (NCSC), and law enforcement to secure its systems.
The company has already restarted some of its IT systems and is now able to repay suppliers, send parts to mechanics to repair vehicles, and ship cars to showrooms.
“The foundational work of our recovery programme is firmly under way, and we will continue to provide regular updates to our colleagues, retailers and suppliers,” said a JLR spokesperson (via The Guardian). “We thank everyone connected with JLR for their continued support and patience.”
Bottom line: The UK government’s loan guarantee buys JLR crucial breathing room—protecting jobs and suppliers while the automaker works to restart production—but the cyberattack’s ripple effects highlight just how vulnerable the global auto industry is to digital disruption.
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