Jaguar Land Rover suppliers rescued with £1.5bn loan guarantee

Core Points - Jaguar Land Rover (JLR) has received a £1.5 billion government-backed loan to support its operations after a cyber attack halted production [1][2] - The loan aims to protect thousands of jobs and support the supply chain within the UK automotive industry [2][5] - JLR's production capacity is 450,000 cars per year, but it was forced to cease global production due to the cyber attack that compromised systems managing spare parts and payments [2][5] Financial Support - The loan is provided by a bank and will be repaid over five years, backed by a guarantee from UK Export Finance [3] - In the worst-case scenario, the government could be liable for £1.2 billion [4] - The loan mechanism previously provided £1 billion for Ford, covering 80% of the loan without requiring upfront taxpayer funds [3] Recovery Efforts - Initial signs of recovery have emerged, with staff potentially returning to work as early as October 1 and production resuming by October 6 [5] - JLR's global parts logistics center is set to reopen to assist in repairs, indicating a phased recovery approach [6] - Senior management and teams in the UK and India have been working extensively to process payments and maintain supplier relationships during the crisis [7][8] Operational Adjustments - A large facility has been established in Leicestershire to manage parts logistics, allowing access to 290,000 parts for workers [8] - A customer relations team has efficiently uploaded 4,000 vehicle identification numbers in one evening to ensure proper vehicle delivery [9]