THE GOVERNMENT has underwritten a £1.5billion loan guarantee to Jaguar Land Rover (JLR) after a cyber attack forced factory shutdowns.
Last month JLR paused production at factories including Lode Lane and Castle Bromwich following the attack.
JLR has announced plans to restart operations at factories on October 1.
The Government has agreed to support JLR with a guarantee expected to unlock up to £1.5billion to give certainty following a recent cyber-attack, Business Secretary Peter Kyle has announced.
The Export Development Guarantee (EDG), which will be paid back over five years, will be provided by export credit agency UK Export Finance and is set to unlock a loan from a commercial bank that will bolster JLR’s cash reserves so it can support its supply chain which has been greatly impacted by the shutdown.
Business and Trade Secretary Peter Kyle said: “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.
“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.
“We’re backing our automotive sector for the long term through our modern Industrial Strategy and the landmark trade deals we’ve signed to boost exports, as part of our Plan for Change.”
Chancellor of the Exchequer Rachel Reeves said: “Jaguar Land Rover is an iconic British company which employs tens of thousands of people – a jewel in the crown of our economy.
“We are protecting thousands of those jobs with up to £1.5billion in additional private finance, helping them support their supply chain and protect a vital part of the British car industry.”
In a statement the car company said: “As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world‑class vehicles.
“We continue to work around the clock alongside cybersecurity specialists, the UK Government’s NCSC and law enforcement to ensure our restart is done in a safe and secure manner.
“We would like to thank everyone connected with JLR for their continued patience, understanding and support. We know there is much more to do but the foundational work of our recovery is firmly underway, and we will continue to provide updates as we progress.”
JLR is considered one of the UK’s largest exporters and a major employer – employing 34,000 directly in its UK operations.
It also operates the largest supply chain in the UK automotive sector, much of it made up of SMEs, and employing around 120,000 people.
Mayor of the West Midlands Richard Parker said: “This support is vital to the West Midlands – it will keep people in work, protect the smaller firms that rely on JLR and give our region the stability it needs while production is paused.
“I’ll keep working hard with ministers and industry to safeguard jobs and make sure our world-class automotive sector comes through this stronger.”
The Government has been in daily contact with JLR and cyber experts to listen to concerns and what support can be provided to get production back online.
GMB Union, representing workers at Jaguar Land Rover and it’s manufacturing supply chain, has welcomed the announcement of Government support.
Martin Allen, GMB regional secretary, said: “Jaguar Land Rover is a British institution; huge parts of the economy across the UK and here in the Midlands are tied into it’s success.
“It is a welcome step that Government have intervened in this way, to support the company as well as the tens of thousands of workers across it’s supply chain.
“From day one GMB have been clear that this moment called for urgent and considered action; that is exactly what we have seen from Government.
“The Midlands is at the heart of British manufacturing, and we cannot afford to leave it’s future to chance”.
