**UK Government Announces £1.5 Billion Loan Guarantee to Support Jaguar Land Rover Following Cyber-Attack**
*London:* The UK government on Sunday announced it will support the iconic British carmaker Jaguar Land Rover (JLR) with a loan guarantee of up to £1.5 billion. This move aims to provide certainty to the Tata Motors-owned company’s supply chain following a devastating cyber-attack that forced a production shutdown earlier this month.
The loan will be provided through a commercial bank and backed by the Department for Business and Trade’s (DBT) Export Development Guarantee (EDG), facilitated by the export credit agency UK Export Finance. The facility is to be repaid over five years.
The government’s decision is intended to bolster JLR’s cash reserves and support the many small and medium enterprises (SMEs) in its supply chain who are struggling to stay afloat.
“This cyber-attack 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 Peter Kyle, Business and Trade Secretary. “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.”
Kyle emphasized that the loan guarantee is a vote of confidence in the UK automotive sector, which is expected to benefit from landmark trade deals, including the Free Trade Agreement (FTA) with India.
Chancellor Rachel Reeves added, “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 safeguard a vital part of the British car industry.”
This announcement came after Business and Trade Secretary Peter Kyle and Industry Minister Sarah Jones visited JLR’s Gaydon headquarters in the West Midlands region this week. They also toured JLR’s sunroof manufacturer, Webasto, where they met with senior leaders and workers.
JLR operates plants in Solihull and Wolverhampton (West Midlands), as well as Halewood in Merseyside. It is one of the UK’s largest exporters and a major employer, directly employing around 34,000 people domestically. Moreover, JLR runs the largest supply chain in the country’s automotive sector, primarily composed of SMEs employing approximately 120,000 people.
The Department for Business and Trade said it remains in daily contact with JLR and cybersecurity experts to address ongoing concerns and provide support with the aim of resuming production, which is not expected until next month.
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**JLR’s Recovery Efforts Amid Cyber-Attack**
In an update issued on Thursday, JLR confirmed that it is working to clear a 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 stated.
“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 possible.”
Britain’s largest car manufacturer also revealed that its Global Parts Logistics Centre—which supplies parts to distribution centres for retail partners both in the UK and globally—is returning to full operations.
“This will enable our retail partners to continue servicing our clients’ vehicles and keep our customers mobile,” JLR added.
The company’s financial system used to process vehicle wholesales has also been brought back online, allowing for faster sales and registration of vehicles, which delivers critical 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 full operations resume safely and securely following what the company described as a “difficult time for all connected with JLR.”
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**Background on the Cyber-Attack**
A hacking group calling itself Scattered Lapsus$ Hunters is believed to have claimed responsibility for the incident. This group has been linked to several other high-profile cyber-attacks on UK retailers this year, including Marks & Spencer and Co-op.
Most recently, luxury London department store Harrods reported a cyber-attack this week, which reportedly led to the theft of some customer data.
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*Disclaimer: This story is from the syndicated feed. No changes have been made except to the headline.*
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
