Jaguar Land Rover (JLR) has not utilized a £1.5 billion loan facility guaranteed by the UK government, leading to dissatisfaction among suppliers about claims that the government has supported the carmaker’s supply chain following a significant cyberattack. JLR, the largest automotive employer in Britain, was compelled to halt all operations at its factories starting September 1 for over a month after a cyber-attack compromised essential computer systems.
Liam Byrne, a Labour MP and chair of the business select committee, has requested clarification from Business Secretary Peter Kyle regarding whether any funds have been disbursed to JLR or if the carmaker requested this aid. Suppliers have expressed frustration over government messaging, suggesting it implies a level of support that has not materialized. An executive from a parts manufacturer indicated that the government has not provided direct assistance, contrary to public claims.
After restarting limited production in early October, JLR aims to ramp up output to full capacity by early December. However, the shutdown has severely impacted the automotive industry, already facing low demand. Suppliers have had to lay off thousands of workers, and there is concern about the financial strain as many operate on 60-day payment terms, with the worst pressures expected to emerge shortly.
Despite the government’s announcement of the loan guarantee intended to bolster JLR’s cash reserves and support its supply chain, reports indicate that no funds have transferred to either JLR’s accounts or those of its suppliers. JLR reportedly relied on its existing cash reserves to implement its supplier support scheme. The loan facility might improve JLR’s compliance with existing banking agreements, but it has not evidently assisted suppliers, whom the government promised to support.
A government spokesperson reiterated their commitment to aiding JLR and its supply chain during this challenging period, while Byrne has sought more information on how the government is assessing the effectiveness of its interventions and the decision-making process behind the loan guarantee.
Source: https://www.theguardian.com/business/2025/oct/31/jaguar-land-rover-ministers-claims-15bn-support-untouched