Jaguar Land Rover Secures £1.5 Billion UK-Backed Loan to Rebuild Supply Chain After Cyber Attack

The UK government announced it will guarantee a £1.5 billion commercial bank loan to Jaguar Land Rover, aimed at helping the automaker recover its supply chain following a catastrophic cyberattack that disrupted production.

 

On September 2, Jaguar Land Rover said that it suffered a significant cyber attack affecting its internal network. The incident had a significant impact on operations, but car manufacturing giant said customer data was likely not compromised.

 

“At this stage there is no evidence any customer data has been stolen but our retail and production activities have been severely disrupted,” JLR said.

 

In a separate update, the automaker said it has extended the “the current pause in our production until Wednesday 1 October 2025.

 

“We have taken this decision as our forensic investigation of the cyber incident continues, and as we consider the different stages of the controlled restart of our global operations, which will take time,” JLR added.

 

The UK government recently announced a £1.5 billion loan to JLR under the UK Export Finance’s Export Development Guarantee (EDG) scheme, which mitigates lender risk by guaranteeing most of the loan if JLR fails to repay.

 

Under the program, the UK government is not lending directly to JLR but is instead backing a commercial bank loan through a guarantee. This support enables JLR to access a much larger loan—typically on more favourable terms—than it could secure independently, especially following the significant challenges it currently faces. The five-year loan will offer immediate cash flow relief, allowing the company to pay suppliers and rebuild its supply chain.

 

In a statement shared with the media, 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,” he added.