Jaguar Land Rover has been backed with a massive £1.5billion loan guarantee from the Government, almost a month after a devastating cyber attack forced the iconic British manufacturer to shut its factories and production sites.
Business Secretary Peter Kyle has announced a huge package of measures to support Jaguar Land Rover as it looks to recover from a cyber attack which could have cost the brand hundreds of millions of pounds.
The £1.5billion loan will support Jaguar Land Rover and its supply chain, and will be backed by the Export Development Guarantee provided by UK Export Finance.
The loan will be paid back over five years and bolster JLR’s cash reserves to support the wider supply chain that has been impacted by the cyber attack.
The manufacturer announced earlier this week that it had initiated a “controlled, phased restart” of its operations, although production facilities will remain closed until Wednesday, October 1.
As part of this, it significantly increased its IT processing capacity for invoicing, allowing it to clear the backlog of payments to suppliers.
Commenting on the loan, 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.”
Jaguar Land Rover and its supply chain have been boosted by a £1.5billion loan from the Government
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Jaguar Land Rover is one of the UK’s largest exporters and employs 34,000 people as part of its West Midlands plants in Solihull and Wolverhampton, and its Merseyside facility at Halewood.
The Business Secretary and Industry Minister visited JLR’s Gaydon headquarters earlier this week, followed by a tour of the Webasto factory, which makes roofs for JLR.
Since the cyber attack, which was first identified at the end of August, the Government has been in daily contact with Jaguar Land Rover, with the motoring industry also engaging with the supply chain.
The Society of Motor Manufacturers and Traders (SMMT) convened a meeting of its Automotive Components Section, while JLR has worked alongside the National Cyber Security Centre and law enforcement to deal with the cyber incident.
Earlier this week, Business Secretary Peter Kyle and Industry Minister Chris McDonald toured the factory of Webasto, who provide glass roofs to Jaguar Land Rover
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PAChancellor Rachel Reeves said the £1.5billion loan was important to ensure thousands of jobs were protected in the “vital” British car industry and manufacturing sector.
She added: “Jaguar Land Rover is an iconic British company which employs tens of thousands of people – a jewel in the crown of our economy.”
Jaguar Land Rover confirmed that its Global Parts Logistics Centre was also back online for retail partners in the UK and globally, in a further move towards returning to normal practices.
It has also been able to sell and register vehicles for the first time since the hack forced IT systems offline, in a crucial move. Many experts had warned that the cyber attack had come at the worst time, given the popularity of buying a new car in September to get the new “75” number plate.
Jaguar Land Rover confirmed earlier this week that it was starting a phased restart of its operations
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PAWest Midlands Mayor Richard Parker described the support as “vital”, adding that it would protect many of the smaller firms in the JLR supply chain.
“I’ll keep working hard with ministers and industry to safeguard jobs and make sure our world-class automotive sector comes through this stronger,” he continued.
The move has also been met with support from the UK’s leading union, Unite, which had previously called for a Covid-style furlough scheme for the wider supply chain to ensure jobs were protected.
Sharon Graham, general secretary at Unite, said: “This is an important first step and demonstrates that the Government has listened to the concerns raised in meetings with Unite over recent days.
“This is exactly what the Government should be doing, taking action to protect jobs. The money provided must now be used to ensure job guarantees and to also protect skills and pay in JLR and its supply chain.”