UK Government Approves £1.5 Billion Guarantee to Sustain Jaguar Land Rover After Cyberattack
Loan backing seeks to stabilize JLR and its supply chain after production stoppage triggered by IT breach
In response to a crippling cyberattack that halted Jaguar Land Rover’s (JLR) UK production, the British government has sanctioned a £1.5 billion loan guarantee to help restore operational liquidity and safeguard thousands of jobs.
The cyber incident, which struck on August 31, forced the automaker to suspend operations across its factories from September 1.
Critical IT systems used for parts tracking, vehicle production, tools management and sales were disabled, leaving JLR—and its extensive network of more than 1,000 suppliers—particularly vulnerable.
Under the guarantee, supplied through UK Export Finance via an export development guarantee, commercial lenders would shoulder loans to JLR with up to 80 percent of the risk underwritten by the government.
The measure is designed to shore up the automaker’s finances and support its supply chain partners, especially small and medium enterprises under strain.
The loans would be repaid over a five-year horizon.
JLR, which is owned by Tata Motors and employs some 34,000 people in the UK, has not yet signed a definitive agreement with banks but regards the guarantee as its fastest route to restoring cash flow.
Absent resumed production by November, its revenue losses could exceed £3.5 billion.
Business Secretary Peter Kyle described the attack as “an assault on an iconic British brand and our world-leading automotive sector,” affirming that the guarantee would protect skilled jobs across the West Midlands, Merseyside and beyond.
Labour and opposition figures welcomed the intervention, though some criticized the speed of government action and called for even broader support for tiered suppliers.
JLR has begun limited restoration of key IT services, enabling supplier payments, parts logistics, and vehicle dispatch.
However, full factory operations remain on hold.
The automaker announced a pause extension through October 1 while working alongside cybersecurity investigators, the National Cyber Security Centre and law enforcement.
Suppliers facing dire cash flow are pushing for further relief, with proposals ranging from component purchase guarantees to furlough-style schemes.
A joint government-industry statement affirmed ongoing engagement and pledged support in assessing supply chain stresses.
The episode spotlights the scale of disruption possible from digital attacks in advanced manufacturing sectors and raises fresh questions about corporate cyber protection and the role of state-backed support in defending strategic industries.
The cyber incident, which struck on August 31, forced the automaker to suspend operations across its factories from September 1.
Critical IT systems used for parts tracking, vehicle production, tools management and sales were disabled, leaving JLR—and its extensive network of more than 1,000 suppliers—particularly vulnerable.
Under the guarantee, supplied through UK Export Finance via an export development guarantee, commercial lenders would shoulder loans to JLR with up to 80 percent of the risk underwritten by the government.
The measure is designed to shore up the automaker’s finances and support its supply chain partners, especially small and medium enterprises under strain.
The loans would be repaid over a five-year horizon.
JLR, which is owned by Tata Motors and employs some 34,000 people in the UK, has not yet signed a definitive agreement with banks but regards the guarantee as its fastest route to restoring cash flow.
Absent resumed production by November, its revenue losses could exceed £3.5 billion.
Business Secretary Peter Kyle described the attack as “an assault on an iconic British brand and our world-leading automotive sector,” affirming that the guarantee would protect skilled jobs across the West Midlands, Merseyside and beyond.
Labour and opposition figures welcomed the intervention, though some criticized the speed of government action and called for even broader support for tiered suppliers.
JLR has begun limited restoration of key IT services, enabling supplier payments, parts logistics, and vehicle dispatch.
However, full factory operations remain on hold.
The automaker announced a pause extension through October 1 while working alongside cybersecurity investigators, the National Cyber Security Centre and law enforcement.
Suppliers facing dire cash flow are pushing for further relief, with proposals ranging from component purchase guarantees to furlough-style schemes.
A joint government-industry statement affirmed ongoing engagement and pledged support in assessing supply chain stresses.
The episode spotlights the scale of disruption possible from digital attacks in advanced manufacturing sectors and raises fresh questions about corporate cyber protection and the role of state-backed support in defending strategic industries.
