The UK government has approved a £1.5 billion ($2 billion) loan guarantee for Jaguar Land Rover (JLR) in response to a recent cyberattack that forced the automaker to halt production across its UK factories, the trade minister confirmed on Sunday.
On September 2, JLR revealed it had fallen victim to a major cyberattack, prompting a complete shutdown of production at its facilities. Although the company announced a partial restoration of its IT systems last Thursday, production will remain suspended until at least October 1 as part of a "phased restart" process.
To mitigate the fallout and reassure stakeholders, the British government will not lend directly to JLR, which is owned by India’s Tata Motors. Instead, the support will come via a loan guarantee issued through a government credit agency, enabling the company to secure commercial financing that will be repaid over five years.
The move is intended to stabilize the company’s cash flow and provide critical certainty to its supply chain, which has faced serious disruptions. Unions had warned that delays in supplier payments risked pushing some firms to the brink of collapse.
Trade Minister Peter Kyle said the guarantee would play a vital role in protecting jobs and industries across the UK. “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,” he said.
He added that the guarantee “will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside, and throughout the UK.”
Jaguar Land Rover confirmed that as IT systems gradually come back online, it is working to clear a backlog of payments to suppliers. The attack has highlighted the growing vulnerability of high-profile companies to cybercrime, with hackers increasingly targeting luxury brands and retailers. Other recent victims in the UK include Marks & Spencer, Harrods, and the Co-op food chain.
The government’s swift action is seen as a strategic move to protect the broader automotive ecosystem, which contributes billions to the UK economy and supports thousands of skilled jobs nationwide.
Source: BSS
Bd-pratidin English/ Jisan
