JLR steps in with 500m supplier lifeline amid stalled state support

"Jaguar Land Rover (JLR) is preparing to inject up to £500 million into its supply chain to prevent a wave of insolvencies among parts makers after a cyberattack brought production to a standstill and left thousands of UK suppliers struggling for cash. The initiative, expected to be finalised within days, will see JLR lend directly to its first-tier suppliers through an invoice financing facility, providing immediate cashflow relief as the carmaker begins to restart operations."

"The plan comes as a taxpayer-backed £1.5 billion rescue guarantee announced by ministers last weekend remains unsigned, despite being billed as a lifeline for the UK's biggest car manufacturer. Sources close to the talks said the state-supported financing deal has yet to be approved, leaving suppliers uncertain when or if funds will flow."

"JLR, which employs 34,000 people and supports around 120,000 more across its UK supply chain, has been battling to restore production following a hacking incident in early September that crippled its IT systems and halted manufacturing globally. The government's proposed £1.5bn facility was announced by Business Secretary Peter Kyle and Chancellor Rachel Reeves to help JLR secure short-term liquidity from commercial lenders. Reeves described it as a measure to "protect thousands of jobs," while Kyle said it showed Labour "standing by British manufacturing.""

Jaguar Land Rover plans to inject up to £500 million into its supply chain to prevent insolvencies among parts makers after a cyberattack halted production and strained supplier cashflow. The company will lend directly to first-tier suppliers through an invoice financing facility to provide immediate liquidity as operations restart. A taxpayer-backed £1.5 billion rescue guarantee announced by ministers remains unsigned, leaving uncertainty over state-supported funding. JLR employs 34,000 people and supports about 120,000 more across its UK supply chain. Regional business leaders warn suppliers are running out of cash and urge rapid action to avoid major collapses.

Read at Business Matters