Jaguar Land Rover has been offered a U.K. government loan guarantee to help it, and its suppliers, weather the financial storm it is suffering following a devastating cyberattack.
The automaker, which industry experts estimate will lose up to £2 billion ($2.67 billion) in revenue because of the attack, can now fall back on a potential £1.5 billion ($2 billion) loan that will be guaranteed by the nation’s government.
And the promised fiscal boost is already having an effect on the company’s confidence, with JLR announcing it expects to restart vehicle production in “the coming days.”
In a joint statement issued by the U.K.’s Business and Trade Secretary Peter Kyle, and the Chancellor Rachel Reeves, the government commits to the rescue plan following a visit to one of JLR’s main suppliers, the sunroof and interior component company Webasto.
Its loan is expected to be provided by an as-yet-unspecified commercial bank and is to be repaid within five years backed by a government Export Development Guarantee provided by export credit agency U.K. Export Finance, the statement says.
“This cyberattack 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,” Kyle says in an official release. He adds, “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.”
With plants in Solihull and Wolverhampton in the West Midlands, plus Halewood in Merseyside, JLR employs 34,000 directly in its U.K operations while a further 120,000 people are employed among its network of suppliers.
Now the company says it is on the cusp of restarting vehicle production.
It says its program for a phased restart is underway and it has informed work colleagues, retailers and suppliers “that some sections of our manufacturing operations will resume in the coming days,” a JLR news release says.
“We continue to work around the clock alongside cybersecurity specialists, the U.K. Government’s NCSC (National Cyber Security Centre) and law enforcement to ensure our restart is done in a safe and secure manner,” the release adds.
The news has been welcomed by the chief executive of the U.K.’s automotive industry representative body, the Society of Motor Manufacturers and Traders (SMMT), Mike Hawes, who also calls for quick action on the government’s support to save many suppliers who are in a cashflow crisis.
“The wider supply chain is complex and diverse, however, made up of many SMEs (small and medium enterprises) who are in distress,” Hawes tells WardsAuto in an email. “To prevent lasting damage to these businesses – businesses which underpin not just JLR but many other U.K. manufacturers – further specific measures will likely be necessary to ensure long term resilience,” he adds.
