Jaguar Land Rover Secures UK Government Guarantee for £1.5 Billion Loan to Drive EV Expansion

The UK government will support Jaguar Land Rover with a £1.5 billion ($2 billion) loan to alleviate the burden on suppliers caused by the automaker’s production stop, which was brought on by a cyberattack.

The government announced on 27 September that the loan, which will be given by a commercial bank and insured by UK Export Finance, will be paid back over a period of five years. It comes after the attack earlier this month caused the Range Rover manufacturer to shut down operations in Slovakia, Brazil, India, and the UK, disrupting the larger supply chain.

The Labour government was in negotiations to provide assistance to vendors affected by the hack, which compelled some to send employees home while others awaited JLR’s payments. The biggest automaker in the UK has 34,000 employees, and its supply chain supports an additional 120,000 jobs in the nation.

Providing a Side of Relief to Prime Minister Keir Starmer’s Government

In addition to helping the car industry, this move will also assist in relieving some of the strain on Prime Minister Keir Starmer’s administration before his ruling Labour Party begins its annual conference in Liverpool on September 28.

This loan guarantee would assist in strengthening the supply chain and protecting skilled jobs in the West Midlands, Merseyside, and throughout the United Kingdom, according to Business Secretary Peter Kyle, who visited the automaker’s headquarters and supplier Webasto this week.

In order to clear a backlog of supplier invoices, expedite the delivery of parts to dealers, and expedite vehicle sales and registrations, JLR announced on 25 September that some of its systems were back online. Although it has warned that it may take some time to get back to full speed, the company plans to resume certain manufacturing operations on October 1.

JLR Already Started the Recovery System

Restarting a small number of its computer systems is the first step in Jaguar Land Rover’s recovery process following a hack. A gradual recovery procedure is also in progress, according to the manufacturer, weeks after the cyberattack compelled the automaker to halt production at all of its UK operations.

After media reports indicated that JLR would have to pay up to 2 billion pounds since it was not insured against the catastrophe, which has already caused significant financial losses and delayed operations, the company released a statement in response to a request for clarification from BSE.

According to the announcement, JLR has notified its suppliers, retail partners, and coworkers that certain areas of its digital estate are now operational as part of the controlled, phased relaunch of its business. Its recovery programme’s foundational work is already under way.