Britain considering financial support for Jaguar Land Rover's suppliers

Britain's government is considering a financial lifeline to carmaker Jaguar Land Rover's suppliers after a shutdown caused by a cyberattack was extended until October, the BBC said on Thursday. 

The luxury carmaker, owned by India's Tata Motors, has three factories in Britain, which together produce about 1,000 cars per day. The company is losing at least 50 million pounds ($68 million) a week, according to the BBC, with many of its 33,000 staff told to stay at home. 

Business minister Peter Kyle and industry minister Chris McDonald visited JLR on Tuesday and talked to the CEO about how the company can work towards restarting production. 

 

"We have two priorities helping Jaguar Land Rover get back up and running as soon as possible and the long-term health of the supply chain," said McDonald. 

The BBC said ministers were considerig a scheme to buy component parts from the suppliers to enable them to survive until JLR resumes production. 

Another option being considered is providing government-backed loans to suppliers, the BBC said, although it added that the idea was not popular with suppliers. 

When asked about the BBC report, the business department pointed to a statement on Tuesday in which Kyle said "we are doing everything we can to minimise the impact of this incident."  (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)