Why JLR is preparing a £500M loan for its suppliers
What's the story
Jaguar Land Rover (JLR) is preparing a private loan of up to £500 million ($674 million) for its suppliers. The move comes after a cyberattack in early September that brought the carmaker's production facilities to a halt, The Times reported. The loan is independent of a separate £1.5 billion state-backed guarantee announced last weekend, which has yet to be finalized.
Recovery plan
JLR to begin phased restart of production
JLR, a subsidiary of India's Tata Motors Ltd, will begin a phased restart of its global production facilities on Monday. However, industry experts believe that the company may not be fully operational until after Christmas. A spokesperson for JLR said in a statement to Bloomberg News, "As the controlled, phased restart of our operations continues, we are delivering solutions to support JLR's suppliers."
Support measures
UK government intervened to prevent supply chain collapse
The UK government intervened last weekend to prevent a potential collapse in the supply chain, with some small suppliers depending on JLR for their business. Notably, the company has also been working on securing an additional £2 billion from banks to strengthen its financial position.