The government has agreed to support Jaguar Land Rover (JLR) with a guarantee, expected to unlock up to £1.5 billion, providing certainty to its supply chain following a recent cyber attack.
The loan from a commercial bank, backed by the Export Development Guarantee (EDG) provided by the export credit agency UK Export Finance, will be paid back over five years and bolster JLR’s cash reserves so it can support its supply chain, which has been greatly impacted by the shutdown.
With plants in Solihull and Wolverhampton in the West Midlands, plus Halewood in Merseyside, JLR is 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, comprising much of which is made up of SMEs, and employs around 120,000 people.
The government says it has been in daily contact with JLR and cyber experts to listen to concerns and what support can be provided to get production back online.
The support follows several significant actions by the government in recent months to back the UK’s automotive sector, including securing landmark trade deals with India and the US to turbocharge export opportunities for UK companies by slashing tariffs.
“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,” said Business and Trade Secretary Peter Kyle.
“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.”
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