Stricken JLR given loan so it can pay its supply chain
Jaguar Land Rover (JLR) is to receive a government loan of up to £1.5 billion to give certainty to its supply chain following a recent cyber-attack, Business Secretary Peter Kyle said today.
The loan, from a commercial bank, has been made to the stricken firm on the agreement it is paid back over the next five years.
This injection of liquidity is intended to bolster JLR’s coffers so it can support its supply chain, which has been greatly impacted by the shutdown.
Livelihoods depend on it
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.
“This loan guarantee will help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK.”
Chancellor of the Exchequer Rachel Reeves said: “We are protecting thousands of those jobs with up to £1.5 billion in additional private finance, helping them support their supply chain and protect a vital part of the British car industry.”
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.
120,000 people employed
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.
This support follows a visit by the Business Secretary and Industry Minister to JLR’s Gaydon headquarters and JLR sunroof manufacturer Webasto this week to meet senior leaders, workers and members of its supply chain.
Mayor of the West Midlands Richard Parker added: “This support will keep people in work, protect the smaller firms that rely on JLR and give our region the stability it needs while production is paused.”
The Government 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 government in recent months to back the UK’s automotive sector, including securing trade deals with India and the US to boost export opportunities for UK companies by slashing tariffs.
The Government also launched an Electric Car Grant to support the transition to zero-emission vehicles and incentivise sustainable manufacturing, and slashed industrial electricity costs for thousands of companies through the British Industrial Competitiveness Scheme, as part of the modern Industrial Strategy.
The Strategy also committed £2 billion capital and R&D funding for the auto sector to 2030, and an additional £500 million to extend the R&D support for the industry to 2035.
