Government Provides $2 Billion Guarantee to Support Cyberattack-Hit JLR and Its Suppliers | Carscoops

      JLR announced that its production lines will resume in the upcoming days, nearly a month after the cyberattack that has resulted in losses of about $10 million daily.

      The company intends to restart production this week, following a cyberattack that halted operations at its UK plants.

      To support suppliers impacted by the halt in orders, the UK government has intervened with a $2 billion loan guarantee.

      Since September 1, JLR has not produced a single vehicle.

      More than four weeks after the destructive cyberattack, JLR has reported that it is close to restarting its UK production lines. The company aims to gradually resume operations at its three British facilities starting in the ‘coming days.’

      “Today, we are informing our colleagues, retailers, and suppliers that some parts of our manufacturing operations will resume in the near future,” JLR stated.

      The company is collaborating continuously with cybersecurity experts, the UK Government’s NCSC, and law enforcement to ensure a safe and secure restart.

      Fearing that some of the 700 suppliers reliant on JLR may face bankruptcy due to the suspension of all orders, the UK government provided a $2 billion (£1.5 billion) loan guarantee. This funding is designated to help sustain the supply chain and is expected to be reimbursed over five years.

      In typical operations, JLR produces around 1,000 vehicles daily, but since the cyberattack on September 1, it has not manufactured any cars. This halt is believed to have incurred nearly $10 million (£7.5 million) in losses each day and has also impacted the retail aspect of the company, with dealers reporting the need to use physical paperwork for the first time in decades.

      JLR operates two plants in the West Midlands and a third in Merseyside. According to BBC News, the Wolverhampton engine plant is set to be the first to restart, though it may take weeks for full production to resume at all locations.

      The shutdown has only affected Land Rover production, as the sister company Jaguar has discontinued all its older models to pivot towards a more upscale market and introduce a new electric sedan showcased by this year’s 00 coupe concept.

      JLR is not the only prominent British luxury brand facing challenges from a cyberattack. The iconic London department store Harrods was attacked last week by a group that had previously targeted the British high street retailer M&S, resulting in significant losses.