JLR's £500m Supplier Lifeline as Production Restart Looms
Business leaders in the West Midlands have expressed worry over the cash flow issues facing Jaguar Land Rover (JLR) and its suppliers. A phased restart of production is set for Monday, but full operations may not resume until Christmas. This comes after a hacker attack last month halted global production.
JLR is working on a privately funded initiative, separate from the £1.5bn rescue package announced by the UK government. The automaker is finalising a deal to lend its suppliers up to £500m to support its supply chain, which currently stands still. This move aims to aid the 120,000 employees in the UK supply chain, with significant facilities in Wolverhampton and Solihull being crucial to the local economy.
However, the deal has not been signed, and questions remain about whether it will provide sufficient support for suppliers in need. The government's loan guarantee scheme may not be enough, and further measures could be necessary if the situation worsens. Local chambers of commerce heads have urged the government to learn from past crises, such as Carillion and MG Rover, to prevent a similar impact on supply chains.
The UK government has stepped in with a £1.5bn guarantee to protect over 34,000 jobs. JLR's planned £500m lending scheme to suppliers is a separate effort to stabilise its supply chain. As production resumes in phases, all eyes are on whether these measures will be enough to navigate the ongoing challenges.
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