Jaguar Land Rover cyberattack: UK pledges $2 billion loan guarantee; move aims to secure supply chain
JLR, the Tata Motors-owned luxury automaker, said earlier this month it was hit by hackers, disrupting operations and leaving its IT systems offline.The company began a “phased restart” last week but confirmed that vehicle production will remain suspended until at least October 1.
Its three UK factories, which together produce around 1,000 cars daily and employ thousands around Birmingham and Liverpool, have been affected, Reuters reported.Trade minister Peter Kyle said the move would “help support the supply chain and protect skilled jobs in the West Midlands, Merseyside and throughout the UK.”“This cyberattack 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,” he added.The loan guarantee will not involve direct lending from the government.
Instead, a government credit agency will back a commercial bank loan to JLR, which will be repaid over five years, AFP reported.The measure is aimed at stabilising the company’s finances and providing certainty to its supply chain, where some suppliers had warned of collapse due to delayed payments.JLR said the partial systems recovery has helped clear a backlog of supplier payments.
Cyber gangs have recently stepped up attacks on high-profile UK brands, with Marks & Spencer, Harrods, and the Co-op among the targets.
