Jaguar Land Rover Secures £3.5B Loan to Resume Production After Cyberattack
Jaguar Land Rover Automotive Plc has secured a crucial £3.5 billion ($4.7 billion) in loan commitments to restart car production following a recent cyberattack. The move will bring relief to small suppliers who rely heavily on the company for business.
The automaker has been grappling with IT outages, which led to difficulties in paying suppliers and a growing backlog of payments. Some sections of Jaguar Land Rover's production operations are set to resume in the coming days, a positive step towards recovery.
The UK government has stepped in to provide support, offering a £1.5 billion loan guarantee to bolster Jaguar Land Rover's finances during the shutdown. Additionally, the company is raising a further £2 billion from banks to tide over the crisis.
The cyberattack has had significant repercussions, with the Tata Group, Jaguar Land Rover's parent company, losing over $75 billion in market value this year. The attack comes at a time when Jaguar Land Rover was already facing challenges, including US tariffs and criticism over its re-branding efforts.
Jaguar Land Rover's production resumption, backed by substantial loan commitments and government support, is a step towards alleviating the strain on small suppliers and the company's financial health. The cyberattack's impact, however, underscores the need for robust cybersecurity measures in today's digital landscape.
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