The UK Government has stepped in to support Jaguar Land Rover (JLR) and its supply chain with a loan guarantee worth up to £1.5 billion, following the recent cyber-attack that disrupted the
carmaker’s operations.
The guarantee, announced today (28 September) by Business Secretary Peter Kyle, is designed to give JLR and its suppliers financial breathing space. The loan, arranged with a commercial bank and backed by UK Export Finance, will be repaid over five years. The move aims to keep cash flowing through the country’s biggest automotive supply chain, much of which relies on smaller firms hit hardest by the shutdown.
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”.
Chancellor of the Exchequer Rachel Reeves said:
“Jaguar Land Rover is an iconic British company which employs tens of thousands of people - a jewel in the crown of our economy.
Today 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”.
JLR employs 34,000 people directly in the UK, with major plants in Solihull, Wolverhampton and Halewood, and its vast supply chain supports around 120,000 more jobs, many in small and medium-sized businesses.
The announcement follows visits by ministers to JLR’s Gaydon headquarters and to Webasto, one of its key suppliers. Local leaders also welcomed the news. West Midlands Mayor Richard Parker said the loan guarantee would provide “vital stability” for the region, keeping people in work and shielding smaller firms while production is paused.
The government has been working closely with JLR and cyber experts throughout the crisis and says it is committed to backing the wider automotive industry for the long term. Recent measures include:
- New trade deals with India and the US, opening up export opportunities.
- An Electric Car Grant to encourage zero-emission vehicles and greener manufacturing.
- Lower industrial energy costs through the British Industrial Competitiveness Scheme.
- A pledge of £2 billion in capital and R&D funding for the sector up to 2030, plus another £500 million for innovation through 2035.
For now, the immediate focus is on helping JLR and its suppliers recover from the cyber-attack and ensuring the UK car industry stays resilient during the disruption.