Jaguar Land Rover resumed a loan supported by the government of 1.5 billion pounds sterling after a paralyzing cyber attack | British news Aitrend

The government will take out a loan guarantee of 1.5 billion pounds Sterling in Jaguar Land Rover (JLR) after a mass cyber attack forced a closure.

JLR suspended production in its British factories after attack August 31. The judgment should last until October 1, leaving the largest suppliers of the British automaker in the limbo.

The loan should give suppliers a certain certainty in the middle of continuous closure, as the 1.5 billion pounds sterling will help strengthen JLR’s cash reserves because it reimburses companies in its supply chain.

The government will provide its support for the loan through the export development guarantee (EDG), a financial support mechanism aimed at helping British companies that sell their goods abroad.

The loan of 1.5 billion sterling pounds, a commercial bank, will be reimbursed over five years.

“After our decisive action, this loan guarantee will help support the supply chain and protect qualified jobs in the West Midlands, Merseyside and throughout the United Kingdom,” said business secretary Peter Kyle.

Chancellor Rachel Reeves added: “Jaguar Land Rover is an emblematic British company that employs tens of thousands of people – a jewel in the crown of our economy.

“Today, we protect thousands of these jobs with up to 1.5 billion sterling pounds in additional private finance, helping them to support their supply chain and protect a vital part of the British cars industry.”

Following the attack, the production was interrupted through the car supply chain, with thousands of staff outside the work.

More than 33,000 people work directly for JLR in the United Kingdom, many of whom on the West Midlands assembly lines, the largest of which is in Solihull, and a factory in Halewood on the Merseyside.

It is estimated that 200,000 others are employed by several hundred companies in the supply chain, which have faced a commercial interruption with their biggest customer.

The ministers had daily contacts with JLR and Cyber ​​Experts after the attack while the company tries to restart production in its British factories.

Unions and politicians have warned that small suppliers producing parts for JLR could collapse following the closure unless they receive urgent financial support.

This week, Mr. Kyle has met Webasto workers and bosses, who manufactures tuning roofs for JLR.

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The brand has the largest supply chain in the British automotive sector, which employs around 120,000 people and is largely made up of small and medium -sized businesses.

The promise of the government of subscription to the JLR loan was welcomed by the Union Unite, whose secretary general Sharon Graham said that the loan was “an important first step and demonstrates that the government listened to the concerns raised during the meetings with unit in recent days”.

She added: “This is exactly what the government should do, taking measures to protect jobs.

“The money provided must now be used to guarantee job guarantees and to also protect skills and pay in JLR and its supply chain.”