The motor sector has welcomed the government decision to give £1.5bn support to Jaguar Land Rover (JLR) and its supply chain following cyber-attack a month ago.
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.
Mike Hawes, speaking on the Today programme, welcomed the move and said other measures might be needed to improve cash flow in the sector.
Liam Byrne, a West Midlands MP and chair of the Commons Business and Trade Select Committee, told the BBC: “I don’t think we can rule out further intervention.
“It could well be that there are other instruments needed – something like a Covid-style loan, for example, may be needed for some suppliers, but we’ve got to make sure this first big loan package is put to work first.”
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.
“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.”
Chancellor of the Exchequer Rachel Reeves said: “Jaguar Land Rover is an iconic British company which employs tens of thousands of people – a jewel in the crown of our economy.
“Today we are protecting thousands of those jobs with up to £1.5 billion in additional private finance, helping them support their supply chain and protect a vital part of the British car industry.”
