UK Govt Backs Jaguar Land Rover With £1.5 Billion Loan Guarantee

The UK government has announced a loan guarantee of £1.5 billion for Tata-owned Jaguar Land Rover (JLR). The move follows a month-long production halt caused by a cyberattack that severely disrupted JLR’s supply chain and jeopardised thousands of jobs. 

The move is designed to protect the iconic marque and shore up the UK’s automotive ecosystem, while restoring confidence and liquidity for affected vendors across the chain.

Financial Details

The loan guarantee will be provided by a commercial bank and backed by UK Export Finance. The facility, to be repaid over five years, is expected to unlock £1.5 billion of support for JLR’s supply chain. 

The cyberattack had forced JLR to idle its plants in the UK, Slovakia, Brazil, and India earlier this month, disrupting the wider manufacturing network.

Impact on Suppliers and Employment

Small suppliers have warned they could run out of cash within a week unless the crisis eases. The British government is actively supporting these companies amid the ongoing disruption, aiming to stabilise the sector and prevent further financial distress across the supply chain.

JLR operates three factories that together produce around 1,000 cars per day, underpinning livelihoods in the Birmingham area and Liverpool. While some firms have begun cutting hours or reducing staff, officials say the loan guarantee should help safeguard skilled jobs across the industry and accelerate the recovery of output.

Official Stance and Next Steps

UK’s Business Minister Peter Kyle condemned the cyberattack as “not only an assault on an iconic British brand, but on our world-leading automotive sector.” 

He emphasised that the loan guarantee is intended to support the supply chain and safeguard skilled employment nationwide. By cushioning suppliers and restoring operational continuity, the intervention aims to accelerate JLR’s recovery and reduce the risk of deeper disruptions spreading through the industry.

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