£1.5bn Lifeline for JLR: Government Steps Up Amid Cyber Crisis

The UK government is stepping in to offer a substantial £1.5bn loan guarantee to Jaguar Land Rover (JLR) as the company navigates the fallout from a severe cyber-attack that has paralyzed production. Business Secretary Peter Kyle announced this measure aimed at safeguarding jobs across the West Midlands, Merseyside, and the wider UK, where approximately 30,000 workers are directly employed by JLR, and over 100,000 depend on its supply chain. The attack, which began on August 31, has led to a complete halt in operations since September 1, costing JLR about £50m weekly.

The loan, sourced from a commercial bank, is structured to help suppliers, particularly small businesses critical to JLR’s operations, avoid bankruptcy. Many local suppliers have already reported dire financial situations, with some indicating they have just days of cash left. The government’s initiative, executed through the Export Development Guarantee (EDG), signifies a milestone as it marks the first instance of government intervention following a cyber incident.

Chancellor Rachel Reeves emphasized the importance of this financial support in preserving thousands of jobs, while criticism arose from some quarters regarding the delay in action. Shadow business secretary Andrew Griffith and Liberal Democrat spokesperson Sarah Olney both referred to the slow response and called for additional measures, including a furlough scheme for affected workers.

The cyber-attack has been attributed to a group known as Scattered Lapsus$ Hunters, notorious for attacks on other retailers like Marks & Spencer and Co-op. As they work towards recovery, JLR continues to assure employees and stakeholders that a safe restart is their priority, as they collaborate closely with cybersecurity experts and law enforcement to secure JLR’s systems.