THE GOVERNMENT has underwritten a £1.5billion loan guarantee to Jaguar Land Rover (JLR) after a cyber attack forced factory shutdowns.
Last month JLR paused production at factories including Lode Lane in Solihull and Castle Bromwich following the attack.
JLR has announced plans to restart operations at factories on October 1.
The Government has agreed to support JLR with a guarantee expected to unlock up to £1.5billion to give certainty following a recent cyber-attack, Business Secretary Peter Kyle has announced.
The Export Development Guarantee (EDG), which will be paid back over five years, will be provided by export credit agency UK Export Finance and is set to unlock a loan from a commercial bank that will bolster JLR’s cash reserves so it can support its supply chain which has been greatly impacted by the shutdown.
Redditch business Lear supplies the seats for JLR cars and has been unable to sell its products because of the cyber attack.
The company has been in talks with the town MP Chris Bloore to try and protect jobs at the factory.
Mr Bloore said: “Over the past few weeks, I’ve been working hard behind the scenes to make the case for urgent government support to protect jobs in Redditch and across the West Midlands.
“That’s why I’m pleased the Government has listened and acted.
“Several firms here in Redditch are directly involved in the JLR supply chain and have been affected by the disruption.
“This intervention will help safeguard jobs and give local businesses the certainty they need.”
In a statement the car company said: “As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world‑class vehicles.
“We continue to work around the clock alongside cyber-security specialists, the UK Government’s NCSC and law enforcement to ensure our restart is done in a safe and secure manner.
“We would like to thank everyone connected with JLR for their continued patience, understanding and support.
“We know there is much more to do but the foundational work of our recovery is firmly under way and we will continue to provide updates as we progress.”
JLR is considered one of the UK’s largest exporters and a major employer – employing 34,000 directly in its UK operations.
It also operates the largest supply chain in the UK automotive sector, much of it made up of SMEs, and employing around 120,000 people.
