Jaguar Land Rover is reportedly finalising plans to offer a huge £500million “bailout” for its supply chain, more than a month after a cyber attack suspended production of vehicles.
Sources claim Jaguar Land Rover is offering suppliers a loan worth hundreds of millions of pounds to support themselves during the ongoing production issues caused by a devastating cyber attack, The Times reported.
The lifeline would support suppliers who have been heavily impacted by the production shutdown of Jaguar Land Rover vehicles since the start of September.
A source told The Times that the £500million loan would operate as “an invoice financing facility” as Jaguar Land Rover embarks on a phased restart of operations.
It is believed that suppliers will be able to apply to the manufacturer to have invoices paid as soon as they are submitted, rather than waiting for a standard number of days.
However, sources told The Times that the initiative was yet to be confirmed and could fall through, but could act as a “game changer moment” for the wider supply chain.
A spokesperson for JLR told GB News that it was delivering solutions to support its suppliers as part of the controlled, phased restart of operations.
This includes establishing a dedicated supplier help desk, introducing a manual payment system to settle outstanding invoices and re-establishing automated supplier payment systems.
READ MORE: Jaguar Land Rover to resume production after cyber attack as 120,000 Britons could be impacted by shutdown
Jaguar Land Rover confirmed that it was starting a phased restart of its operations
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PAThey added: “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.”
This is separate from the £1.5billion loan guarantee from the Government announced last weekend to support JLR’s supply chain.
The loan is being provided by a commercial bank and it is backed by the Export Development Guarantee (EDG), which is provided by the export credit agency, UK Export Finance.
The loan guarantee will be paid back over five years and is designed to bolster JLR’s cash reserves to support its supply chain in the aftermath of the cyber attack.
Peter Kyle, Business and Trade Secretary, 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.”
This was echoed by Chancellor Rachel Reeves, who described JLR as “a jewel in the crown of our economy”, adding that the Government was protecting thousands of jobs.
Jaguar Land Rover confirmed that it was continuing to work alongside specialists, the Government’s National Cyber Security Centre and law enforcement.
A group of English-speaking hackers has claimed responsibility for the hack. It is also believed that they were behind the hack that took down Marks and Spencer’s online services for around six months.
JLR announced last week that it had informed colleagues, retailers and suppliers that “some sections” of its manufacturing operations would resume in the coming days.
It added: “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.”