UK grants Jaguar Land Rover a £1.5B loan guarantee after a major cyberattack, though cybersecurity experts voice concerns about the government’s support plan.
The UK government has announced a support package of £1.5 billion ($2 billion) for Jaguar Land Rover (JLR) in response to the disruptive cyberattack that recently hit the company.
UK pledges decisive support for JLR after cyberattack, reinforcing its Industrial Strategy to boost auto sector growth, supply chain, and job creation.
“The Government has agreed to support Jaguar Land Rover (JLR) with a guarantee expected to unlock up to £1.5 billion to give certainty to its supply chain following a recent cyber-attack, Business Secretary Peter Kyle has announced today (28 September).” reads the announcement.
The UK government explained that its decision aims at protect JLR’s supply chain, safeguard jobs, and stabilize the auto sector after the cyberattack severely disrupted operations.
The government highlighted JLR’s key role as a top exporter, employing 34,000 directly and supporting 120,000 jobs through its vast automotive supply chain.
“The loan from a commercial bank, backed by the Export Development Guarantee (EDG) provided by export credit agency UK Export Finance, will be paid back over five years and bolster JLR’s cash reserves so it can support its supply chain which has been greatly impacted by the shutdown.” continues the announcement.
A commercial bank will provide a loan backed by UK Export Finance’s EDG, and JLR will repay it over five years to strengthen cash reserves and support its supply chain after the shutdown.
“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.” Business and Trade Secretary Peter Kyle said.
“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.
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.”
Cybersecurity experts warn the Jaguar Land Rover bailout may embolden cybercriminals to target UK firms with weak defenses. Researcher Kevin Beaumont said the UK is now a prime target.
The Chair of the Business and Trade Committee, Liam Byrne MP asked probing questions about the attacks on Co-op, Marks and Spencer and Jaguar Land Rover. The three companies are all defended by Tata Consultancy Services (TCS).
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