Following a cyberattack that halted production for nearly a month, the UK government has announced a £1.5 billion ($2 billion) loan guarantee for Jaguar Land Rover (JLR) to stabilize its supply chain.
UK’s Business minister Peter Kyle said the cyberattack was “not only an assault on an iconic British brand but on our world-leading automotive sector”, adding that the “loan guarantee will help support the supply chain and protect skilled jobs.”
The business ministry announced that financing will be privately raised, guaranteed by Britain’s export credit agency, UK Export Finance, and is expected to unlock 1.5 billion pounds of support for Land Rover’s supply chain.
Shares of Tata Motors fell around 4.98 percent this week. Still, they rebounded 1.45 per cent on Friday following reports that its British subsidiary could incur a potential uninsured loss of approximately €2 billion due to the cyberattack on September 2.
Reportedly, the impact could surpass JLR’s total profit from the last fiscal year, as JLR had not finalised a cyber insurance policy, potentially leaving the automaker uninsured for the attack.
Jaguar Land Rover announced it will extend factory closures until October 1.
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The company’s three UK plants in Solihull, Halewood, and Wolverhampton used to produce approximately 1,000 cars daily, with reports estimating losses of around 50 million pounds per week due to the plants being shut down.
