**UK Government Announces £1.5 Billion Loan Guarantee to Support Jaguar Land Rover Following Cyber-Attack**
*London:* The UK government on Sunday announced its support for iconic British carmaker Jaguar Land Rover (JLR) with a loan guarantee of up to £1.5 billion. This measure aims to provide certainty to the Tata Motors-owned company’s supply chain in the aftermath of a devastating cyber-attack.
The loan will be extended by a commercial bank and backed by the Department for Business and Trade’s (DBT) Export Development Guarantee (EDG), provided through the export credit agency UK Export Finance. It is to be repaid over a period of five years.
The support is designed to bolster JLR’s cash reserves following the production shutdown that began earlier this month due to the cyber incident. It will also help sustain many firms in the supply chain, predominantly small and medium enterprises (SMEs), which are currently struggling to stay afloat.
Peter Kyle, Business and Trade Secretary, commented, “This cyber-attack was not only an assault on an iconic British brand but also on our world-leading automotive sector and the men and women whose livelihoods depend on it. 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 that the move represents a vote of confidence in the country’s automotive sector, which stands to gain in the long term from “landmark trade deals,” including the Free Trade Agreement (FTA) with India.
Chancellor Rachel Reeves said, “Jaguar Land Rover is an iconic British company that employs tens of thousands of people — a jewel in the crown of our economy. 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.”
This announcement follows a recent visit by Peter Kyle and Industry Minister Sarah Jones to JLR’s Gaydon headquarters in the West Midlands, as well as a tour of JLR’s sunroof manufacturer Webasto to meet with senior leaders and workers.
With manufacturing plants located in Solihull and Wolverhampton (West Midlands), and Halewood (Merseyside), JLR is one of the UK’s largest exporters and a major employer, directly employing around 34,000 people. The company also operates the largest supply chain in the UK automotive sector, much of it consisting of SMEs, employing approximately 120,000 people, according to the DBT.
The department remains in daily contact with JLR and cyber experts to address ongoing concerns and offer support aimed at getting production back online. However, full production is not expected to resume until next month.
In an update issued on Thursday, JLR stated it is working to clear the backlog of payments to suppliers by increasing its invoicing processing capacity. “As part of the controlled, phased restart of our operations, we have informed colleagues, suppliers, and retail partners that sections of our digital estate are now up and running,” the company said.
“The foundational work of our recovery programme is firmly underway. We have significantly increased IT processing capacity for invoicing and are now working to clear the backlog of payments to our suppliers as quickly as we can,” JLR added.
Britain’s largest car manufacturer also noted that its Global Parts Logistics Centre, which supplies parts to distribution centres serving retail partners in the UK and globally, is returning to “full operations.” This development will enable retail partners to continue servicing vehicles and keep customers mobile.
Additionally, JLR confirmed that the financial system used to process vehicle wholesales has been restored, allowing the company to sell and register vehicles more rapidly, thereby improving cash flow.
JLR’s teams continue to work around the clock alongside cybersecurity specialists, the UK government’s National Cyber Security Centre (NCSC), and law enforcement agencies to ensure the restart of full operations takes place “in a safe and secure manner” following what the company described as a “difficult time for all connected with JLR.”
A hacking group calling itself Scattered Lapsus$ Hunters is believed to have claimed responsibility for the cyber-attack. This group has also been linked to other high-profile attacks on UK retailers earlier this year, including Marks & Spencer and Co-op.
Most recently, London’s luxury department store Harrods reported a cyber-attack this week, with some customer data reportedly stolen.
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https://www.freepressjournal.in/business/uk-government-to-support-tata-motors-owned-jaguar-land-rover-with-15-billion-pounds-loan-guarantee-stabilizing-supply-chain-post-cyber-attack