The UK government will guarantee a £1.5 billion ($2 billion) commercial bank loan for Jaguar Land Rover (JLR) after a cyberattack forced the automaker to halt production and left its suppliers facing potential bankruptcy.
In a statement issued Sunday, ministers said the government-backed loan is intended to “bolster JLR’s cash reserves so it can support its supply chain which has been greatly impacted by the shutdown.” JLR will have five years to repay the loan.
The disruption has placed significant strain on JLR’s supply chain, which includes hundreds of small businesses across the UK. Government officials estimate that around 120,000 jobs in the wider automotive ecosystem depend on JLR’s operations.
According to the BBC, this marks the first instance of government financial aid following a cyberattack on a private company in the UK.
JLR shut down its systems on August 31 after detecting a network breach linked to a financially motivated hacking group also responsible for recent attacks on Marks & Spencer and the Co-op. The automaker confirmed that hackers stole some company data, while staff were instructed to stay home as the network was rebuilt.
The shutdown is estimated to have cost JLR £50 million. Despite the setback, the company posted £2.5 billion in pre-tax profits in 2024, suggesting it has the financial resilience to recover.
However, industry experts warn that the loan sets a controversial precedent. Some argue it could encourage hackers if they believe companies underinvesting in cybersecurity will still receive government support.
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JLR, owned by India-based Tata Motors, has also faced scrutiny for outsourcing its cybersecurity to Tata Consulting Services (TCS) prior to the breach. TCS, which provides IT support globally, has been cited as a possible entry point in other UK cyberattacks, raising further questions about the company’s risk management.
Despite multiple missed deadlines, JLR said on Monday it plans to resume production “in the coming days.”
