The UK government will underwrite a £1.5 billion loan guarantee to Jaguar Land Rover (JLR) to support its suppliers as a cyberattack continues to halt production at the carmaker.
Business Secretary Peter Kyle said the loan, provided through a commercial bank, aims to protect jobs in the West Midlands, Merseyside, and across the UK.
JLR has suspended production for weeks following a cyberattack at the end of August, raising concerns that some suppliers—mostly small businesses—could face bankruptcy due to the prolonged shutdown. The company operates the largest supply chain in the UK automotive sector, employing around 150,000 people.
The government will provide the loan guarantee through the Export Development Guarantee (EDG), a mechanism designed to help UK companies that sell overseas. JLR will repay the loan over five years, boosting cash reserves to manage outstanding payments to its suppliers.
No cars have been produced this month, and the company has halted orders with its 700 suppliers. A parliamentary committee noted that some small suppliers had no more than one week of cash remaining. The shutdown is estimated to be costing JLR at least £50 million per week.
Owned by India’s Tata Motors, JLR typically produces around 1,000 cars per day at its three UK factories in Solihull and Wolverhampton (West Midlands) and Halewood (Merseyside).
Peter Kyle said the loan guarantee will “help support the supply chain and protect skilled jobs in the West Midlands, Merseyside, and throughout the UK.” Chancellor Rachel Reeves added that the measure will protect thousands of jobs and safeguard a vital part of the British car industry.
Shadow Business Secretary Andrew Griffith welcomed the support but criticized the delay, urging Labour to establish a cyber reinsurance scheme for UK businesses. Liberal Democrat business spokesperson Sarah Olney also praised the move but stressed the government should be ready to provide a furlough scheme for affected workers.
Unite Union, representing thousands of JLR employees and supply chain workers, described the government support as an “important first step,” emphasizing that the funds must be used to ensure job security, protect skills, and maintain pay.
JLR was targeted by a cyberattack on 31 August, claimed by a group calling itself Scattered Lapsus$ Hunters, which has also targeted retailers including Marks & Spencer and Co-op. Workers have been told to stay home since 1 September, with no confirmed return date.
A JLR spokesperson said the company continues to work closely with cybersecurity specialists, the National Cyber Security Centre (NCSC), and law enforcement to ensure a safe and secure restart. They confirmed that the foundational work of the recovery programme is underway and that regular updates will be provided to employees, retailers, and suppliers.
