The UK government has announced a £1.5 billion loan to Jaguar Land Rover (JLR) to support the company and its supply chain following a significant cyber attack that forced production at JLR facilities to halt for nearly a month. Local MP Liam Byrne, who chairs the Commons Business and Trade Select Committee, indicated that additional government support may be necessary beyond this initial loan. He expressed concerns that some suppliers might face collapse within a week due to the ongoing production pause.
Byrne stated that while the current support is a start, there might also be a need for further measures similar to Covid-style loans for some suppliers. The restart of production at JLR’s facilities in Solihull, Wolverhampton, and Halewood is tentatively expected on October 1, though it could be delayed. Currently, approximately 30,000 people are employed directly by JLR in the UK, with around 100,000 more in the supply chain, many of whom rely exclusively on JLR.
Business Secretary Peter Kyle emphasized that this loan is intended to safeguard jobs at JLR and its supply chain. However, Byrne noted that the terms of the loan would include conditions aimed at ensuring that funds are effectively distributed through the supply chain. There remains uncertainty regarding how businesses supplying the suppliers will be supported.
This incident is part of a broader trend, as JLR has been one of several UK firms affected by cyber attacks this year. Byrne highlighted that the UK’s current economic security measures may not be adequate to protect against such threats in the future. Concerns were further echoed by industry representatives, who warned about the potential impact on smaller businesses reliant on JLR, indicating that many are already facing financial distress without timely assistance.
Source: https://www.bbc.com/news/articles/c62zggj69e0o?at_medium=RSS&at_campaign=rss