Tata Motors gets helping hand from UK govt

London: The UK government on Sunday announced that it will support ‘iconic British brand’ Jaguar Land Rover (JLR) with a loan guarantee of up to 1.5 billion pounds to give certainty to the Tata Motors owned carmaker’s supply chain following a devastating cyber-attack. The loan will come from a commercial bank, backed by the Department for Business and Trade’s (DBT) Export Development Guarantee (EDG), provided by export credit agency UK Export Finance, to be paid back over five years. The aim is to bolster JLR’s cash reserves following the production shutdown since early this month in the wake of the hack to help support firms in the supply chain, many of them small and medium enterprises (SMEs) struggling to stay afloat.

“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,” said Peter Kyle, Business and Trade Secretary. “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,” he said. The minister said it was a vote of confidence in the country’s automotive sector, which stands to benefit in the long term through “landmark trade deals” including the Free Trade Agreement (FTA) with India. “Jaguar Land Rover is an iconic British company which employs tens of thousands of people – a jewel in the crown of our economy. Today we are protecting thousands of those jobs with up to 1.5 billion pounds in additional private finance, helping them support their supply chain and protect a vital part of the British car industry,” said Chancellor Rachel Reeves.