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New Delhi: The UK government on Sunday have said that they will be supporting Tata Motors-owned luxury carmaker Jaguar Land Rover (JLR) with a guarantee of £1.5 billion loan to their supply chain following the recent cyberattack. It comes at a time when JLR are trying to get hold of their financial and operational impact from the cyberattack that has halted their production in it manufacturing facilities across the globe since August 31st.
BBC, in fact, had reported that the production shutdown at all the JLR facilities could cost around £5 million every day.
The carmakers had to close their computer systems and send workers home from facilities in Solihull, Halewood and Wolverhampton last week, without confirming any date for production to resume. According to a government release, JLR have secured a five-year loan from a commercial bank supported by a guarantee from UK Export Finance’s Export Development Guarantee (EDG) program. The funding is going to boost JLR’s cash reserves. It will enable them to assist their supply chain, which has been badly affected by the recent shutdown.
Business and Trade Secretary Peter Kyle has said that after their “decisive action”, the loan is set to help support the supply chain and protect skilled jobs across the UK.
JLR’s plants in Solihull, Halewood and Wolverhampton have 34,000 direct employees. The company is also managing the UK’s largest automotive supply chain. This also includes a vast number of small and medium-sized enterprises (SMEs) and supports close to 1,20,000 jobs.
Chancellor of the Exchequer Rachel Reeves noted that they were protecting around thousands of jobs, close to £1.5 billion in additional private finance, which would help them support their supply chain and protect a big part of the British car industry.
