"The manufacturer has been forced to suspend production for weeks after being targeted by hackers at the end of August. There have been growing concerns some suppliers, mostly small businesses, could go bust due to the prolonged shutdown. About 30,000 people are directly employed at the company's UK plants with about 100,000 working for firms in the supply chain. Some of these firms supply parts exclusively to JLR, while others sell components to other carmakers as well."
"The government will underwrite the loan through the Export Development Guarantee (EDG), a financial support mechanism aimed at helping UK companies who sell overseas. The loan will be paid back by JLR over five years, in an effort to boost the firm's cash reserves as it makes a "backlog of payments" to its suppliers. No cars have been built this month, and the company has stopped placing orders with its 700 suppliers."
The government will underwrite a 1.5bn loan guarantee to Jaguar Land Rover via a commercial bank to protect suppliers and safeguard jobs across the UK. Production at JLR was suspended after a cyber-attack at the end of August, halting manufacturing for weeks and stopping orders to 700 suppliers. About 30,000 people work directly at JLR’s UK plants and roughly 100,000 work in the supply chain, with many small suppliers at risk of running out of cash. The loan will be provided through the Export Development Guarantee and repaid over five years to boost cash reserves and cover a backlog of payments. Production is not expected to resume until at least 1 October, with the halt costing JLR an estimated 50m per week.
Read at www.bbc.com
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