The UK government is exploring financial support options for companies within the supply chain of Jaguar Land Rover (JLR), according to reports from the BBC. JLR has suspended car production following a cyber attack that compromised its IT systems, with operations paused until at least next month.
Concerns are rising regarding the viability of smaller suppliers that are heavily dependent on JLR for their business, as they may struggle to stay afloat without assistance. One potential solution under consideration is for the government to purchase component parts from these suppliers in order to sustain them until JLR resumes production.
Additionally, the government is looking at a scheme similar to the furlough program implemented during the COVID-19 pandemic. This would involve subsidizing worker wages or offering government-backed loans to the affected suppliers. However, government ministers have indicated that a furlough scheme is unlikely due to concerns about its expense and a preference for maintaining employment levels rather than reducing them.
The Business and Trade Select Committee is scheduled to meet on Thursday to gather testimonies from businesses affected by JLR’s operational halt. The outcome of these discussions may influence how the government proceeds with assistance measures for the supply chain.
Source: https://www.bbc.com/news/articles/c62nv0xx32go?at_medium=RSS&at_campaign=rss