The UK government is stepping in with financial support for Jaguar Land Rover, providing it with a hefty loan as it continues to battle the fallout from a cyberattack.
A government-backed loan to the tune of £1.5 billion ($2 billion) will be made available to the carmaker to support its recovery and the companies in its extensive supply chain struggling as JLR brings its invoicing systems back online.
Business secretary Peter Kyle said: “This cyberattack 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 support the supply chain and protect skilled jobs in the West Midlands, Merseyside, and throughout the UK.
“We’re backing our automotive sector for the long term through our modern Industrial Strategy and the landmark trade deals we’ve signed to boost exports, as part of our Plan for Change.”
[…]
JLR’s production plants have remained closed since August 31, and the impact on its suppliers – and local communities – is said to be severe.
Workers and their families fear for their jobs after seeing suppliers, many of which rely on their big JLR contracts, already initiate redundancy proceedings.
Then there are the smaller businesses that serve local communities. With JLR’s main production plants being based in Solihull and Halewood – employing roughly 9,000 and 3,000 workers respectively – businesses such as sandwich shops and cafes have seen a significant loss in revenue.
When these businesses lose out, so do their suppliers, such as bakers and butchers, meaning the impact of JLR’s attack extends far beyond what is typical for such cases.
[…]
It is estimated that the impact of the cyberattack threatens around 120,000 jobs at JLR and companies across its supply chain.
David Bailey, professor of business economics at the University of Birmingham, said JLR could be hemorrhaging between £5-10 million ($6-13 million) for every day that production remains halted.
He estimated that JLR could ultimately lose out on £2.2 billion ($2.9 billion) in revenue and £150 million ($202 million) in profit.
[…]
Source: UK offers JLR landmark £1.5B loan to safeguard suppliers • The Register
Robin Edgar
Organisational Structures | Technology and Science | Military, IT and Lifestyle consultancy | Social, Broadcast & Cross Media | Flying aircraft