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An MP suggests that more government assistance may be necessary for Jaguar Land Rover (JLR) and its extensive supply chain after a £1.5bn loan was announced to support the car maker. Liam Byrne, a West Midlands MP and chair of the Commons Business and Trade Select Committee, stated that additional support beyond the loan may be required to prevent the collapse of some suppliers. He emphasized the importance of a collaborative effort between the government and businesses to tackle cyber-attacks effectively.
Byrne expressed that further intervention cannot be ruled out and proposed the possibility of additional measures like a Covid-style loan for suppliers. With JLR’s UK facilities remaining shut down due to a cyber-attack, concerns are growing about the potential impact on the workforce and the supply chain. The halt in production is expected to continue until at least 1 October, affecting thousands of employees directly employed by JLR and those working for supply chain companies.
Business Secretary Peter Kyle highlighted the government’s initiative to secure a loan for JLR to protect jobs at its UK facilities and support the supply chain. The terms of the loan are expected to include clauses to ensure that cash flows through the supply chain effectively. The recent cyber-attack on JLR serves as a wake-up call for UK businesses, signifying the urgent need to enhance the economic security regime to combat modern cyber threats.
Despite the government’s intervention, concerns remain among companies lower down the supply chain, with concerns about financial support reaching the right areas. The head of manufacturing at Crowe UK mentioned that businesses on the brink of collapse are still facing financial challenges, emphasizing the importance of timely distribution of funding through the supply chain. Discussions are underway to address the urgent need for clarity on how finances will flow through the supply chain to safeguard the UK automotive industry. Smaller suppliers are also on the government’s radar, aiming to ensure their protection amidst ongoing challenges
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