London
The UK government announced a loan guarantee of up to £1.5 billion to support Jaguar Land Rover (JLR) following a severe cyber-attack that disrupted production and threatened the automotive supply chain. The loan, provided by a commercial bank and backed by the Department for Business and Trade’s Export Development Guarantee via UK Export Finance, will be repaid over five years.
The Initiative aims to bolster JLR’s cash reserves and protect suppliers, particularly small and medium enterprises, impacted by the shutdown earlier this month. Business and Trade Secretary Peter Kyle called the attack “an assault on an iconic British brand and our world-leading automotive sector,” emphasizing the need to safeguard skilled jobs across the West Midlands, Merseyside, and other regions. Chancellor Rachel Reeves described the measure as a vote of confidence in the automotive sector, highlighting JLR’s role as one of the UK’s largest exporters and major employers, with 34,000 direct staff and 120,000 in the broader supply chain.
Following visits by government officials to JLR’s Gaydon headquarters and key suppliers, the company confirmed that a controlled, phased restart of operations is underway. Key systems, including invoicing and the Global Parts Logistics Centre, have resumed partial operations to clear supplier backlogs and maintain vehicle sales and registrations.
Cybersecurity experts, law enforcement, and the National Cyber Security Centre continue to work with JLR to ensure a safe and secure full recovery. The attack has been attributed to the hacker group Scattered Lapsus$ Hunters, which has targeted other UK firms this year, including Marks & Spencer and Harrods. The government’s support highlights the critical importance of JLR to the UK economy and the resilience of its automotive sector.
