Jaguar Land Rover Receives UK Government Support Following Cyberattack
Jaguar Land Rover (JLR) will receive support from the British government in the form of a private loan of £1.5 billion (approximately $2.6 billion CAD), guaranteed by the public agency UK Export Finance. The objective is to relieve suppliers hard hit by the production stoppage that followed a cyberattack on August 31.
Production paralyzed in several countries
The cyberattack forced JLR to halt operations at plants in the UK, Slovakia, Brazil and India. The paralysis had a domino effect on the entire supply chain, driving some small suppliers to the brink of bankruptcy. Several stated they had barely a week of liquidity left before they would have to cease operations.
Gradual restart planned for October
After a nearly month-long shutdown, JLR plans to partially restart production starting October 1, but warns that it will take time to return to full capacity. Some critical IT platforms have been restored, allowing the company to pay suppliers, accelerate the distribution of parts to dealerships and stimulate vehicle sales.
A major UK employer
Owned by Indian group Tata Motors, Jaguar Land Rover employs 34,000 people in the UK and indirectly supports an additional 120,000 jobs through its supply chain. In normal times, its three British plants produce some 1,000 vehicles per day.
Original content from auto123.
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