The Government has agreed to support Jaguar Land Rover (JLR) with a guarantee expected to unlock up to £1.5 billion to give certainty to its supply chain following a recent cyber-attack, Business Secretary Peter Kyle has announced.
The loan from a commercial bank, backed by the Export Development Guarantee (EDG) provided by 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.
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.”
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, 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.
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.
