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The UK government has granted Jaguar Land Rover (JLR) a £1.5 billion safety loan to keep it afloat as it deals with the fallout of its cyber attack.
The car manufacturer, owned by Tata Motors in India, revealed that it had suffered a cyber attack at the beginning of September, announcing that it had shut down its systems to prevent further damage.
“JLR has been impacted by a cyber incident. We took immediate action to mitigate its impact by proactively shutting down our systems,” Jaguar Land Rover said in an undated statement on its corporate website.
The company has restored some digital systems but is still facing delays in its factories, the staff of which are still under stay-home orders, according to reports. JLR factories in Halewood, Solihull, Wolverhampton and Castle Bromwich remain closed, creating concerns not only for JLR but also for the British manufacturing industry, as much of the supply chain suffers from the impact.
The government said the £1.5 billion loan is crucial in keeping an iconic British institution alive.
“This cyber attack 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,” said Business and Trade Secretary Peter Kyle.
The loan, which is to be repaid over five years, will be privately sourced from a commercial bank, but will be underwritten using government funds via the Export Development Guarantee.
“Jaguar Land Rover is an iconic British company which employs tens of thousands of people – a jewel in the crown of our economy,” said Chancellor of the Exchequer, Rachel Reeves.
“Today we are protecting thousands of those jobs with up to £1.5 billion in additional private finance, helping them support their supply chain and protect a vital part of the British car industry.”
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