London — Facing severe supply-chain disruption after a late-August cyberattack, Jaguar Land Rover (JLR) has secured a government-backed £1.5 billion loan guarantee to shore up its cash reserves and support its sprawling supplier network. The decision aims to mitigate risks to approximately 34,000 direct employees and 120,000 workers across component and logistics firms affected by the shutdown.
Under the arrangement, a commercial bank will lend funds guaranteed by the Export Development Guarantee scheme administered by UK Export Finance. JLR will repay the loan over five years, with the government covering up to 80 percent of the risk on the facility. The package is intended to provide immediate liquidity so suppliers can maintain operations and protect skilled jobs in regions such as the West Midlands and Merseyside.
The cyberattack, discovered on 31 August, forced JLR to take its IT systems offline, suspend production lines at plants in Solihull, Halewood and Wolverhampton, and halt the shipment of finished vehicles. Industry analyses estimate the disruption has cost the manufacturer at least £50 million a week and threatened supplier insolvencies without urgent intervention.
Business and Trade Secretary Peter Kyle said, “This 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. Following our decisive action, this loan guarantee will help protect jobs and safeguard the supply chain.” Chancellor Rachel Reeves added that the support underscores the government’s commitment to securing long-term growth in the auto industry.
Cybersecurity experts have cautioned that while the bail-out provides short-term relief, it may also signal to threat actors that the UK government will intervene when firms suffer high-profile breaches. This concern highlights the imperative for stronger in-house defenses, greater investment in cyber-resilience and closer coordination between the private sector and state agencies to prevent future incidents.
The JLR intervention marks the first time a UK manufacturer has received direct government financial support following a cyberattack. As production restarts, stakeholders are calling for a comprehensive review of national cybersecurity standards across critical infrastructure and priority sectors.
Jaguar Land Rover Symbol Picture by Jaguar MENA
