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Britain has stepped in to support Jaguar Land Rover (JLR) with a £1.5 billion ($2 billion) loan guarantee after the luxury carmaker was forced to halt production due to a major cyberattack. The disruption, which has lasted nearly a month, has hit JLR’s three key factories in Birmingham and Liverpool, where around 1,000 cars are typically produced each day.
The shutdown has placed immense pressure on the automotive supply chain, with several smaller suppliers warning they had less than a week before running out of cash. A recent survey also revealed that some firms have already reduced working hours or initiated redundancies to cope with the financial strain.
Jaguar Land Rover, owned by India’s Tata Motors, plays a vital role in Britain’s automotive sector, both in production and employment. The government acknowledged the wider economic impact of the shutdown, with Business Minister Peter Kyle stating that the cyberattack was “not only an assault on an iconic British brand, but on our world-leading automotive sector.”
The financial package is designed to stabilize operations across the supply chain and protect thousands of skilled jobs. The loan will be privately financed but backed by Britain’s export credit agency, UK Export Finance, ensuring liquidity for JLR’s network of suppliers. Officials expect the measure to unlock fresh working capital, allowing production to gradually resume and ensuring smaller companies can survive the crisis.
The move highlights the vulnerability of global manufacturers to cyberattacks, as well as the critical importance of government support in protecting strategically important industries. For the UK, safeguarding Jaguar Land Rover is not just about rescuing a carmaker but preserving jobs, innovation, and industrial strength in a sector that underpins the economy.
