Jaguar Land Rover (JLR) has received a £1.5 billion loan guarantee after the automotive company’s operations were damaged by a cyber-attack.
The loan from a commercial bank, backed by the Export Development Guarantee (EDG) provided by export credit agency UK Export Finance, will be paid back over five years.
The aim of the loan is to bolster JLR’s cash reserves so it can support its supply chain which has been impacted by the shutdown.
With plants in Solihull and Wolverhampton in the West Midlands, plus Halewood in Merseyside, JLR is reportedly one of the UK’s largest exporters.
The government stated that this, in addition to JLR employing more than 34,000 people in the UK, made it necessary to provide funding for continued operations.
Additionally, JLR also operates the largest supply chain in the UK automotive sector, much of it made up of SMEs, and employing around 120,000 people.
UK business and trade secretary Peter Kyle said: “This cyber-attack 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.
“Following our decisive action, this loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK.
“We’re backing our automotive sector for the long term through our modern Industrial Strategy and the landmark trade deals we’ve signed to boost exports, as part of our Plan for Change.”
