The UK government will underwrite a £1.5 billion loan to Jaguar Land Rover (JLR) as the company continues to recover from a major cyber attack.
The loan will protect JLR’s supply chain and safeguard jobs across the UK after production at JLR has been suspended since the end of August when the attack happened.
Normally producing around 1,000 vehicles a day, the stoppage is estimated to be costing the business at least £50 million each week.
The disruption has had significant consequences across the supply chain. With JLR not placing any orders with its 700 suppliers, many of the smaller suppliers have warned they are close to running out of money.
The loan will be issued through the Export Development Guarantee (EDG), a scheme that supports UK exporters. JLR will repay the loan over five years, using the funds to increase its cash reserves and cover delayed payments to suppliers.
Read more automotive industry news
Leave a Reply
You must be logged in to post a comment.