Jaguar land rover secures £2 billion credit line after cyber attack

Jaguar Land Rover (JLR), shaken by a severe cyber attack that shut its UK operations, has announced a £2 billion emergency commercial credit line to shore up liquidity and stabilise its supply chain.  The facility complements an existing £1.5 billion government‑backed guarantee aimed at protecting its extensive subcontractor network.

The credit line, provided by Standard Chartered, Citigroup and MUFG, is structured to last 18 months and is priced at investment‑grade terms, reflecting both urgency and the need for confidence in JLR’s recovery plan.  Meanwhile, the UK government guarantee via UK Export Finance is structured to cover up to 80 percent of the commercial borrowing.

The attack first disrupted operations at Jaguar’s Solihull and Castle Bromwich plants, and its engine facility in Wolverhampton. Even as partial IT recovery enables manual vehicle registration, full production remains off line.  JLR has begun a phased revival approach, prioritising simpler assembly lines and recovering critical systems.

Tata Motors, JLR’s parent company, also triggered a leadership transition, appointing its CFO PB Balaji as CEO for JLR operations. Balaji assured members of Parliament of Tata’s commitment to support JLR’s restitution in the UK.

Industry analysts view the dual public‑private package as essential under current stress, but warn of downside if delays persist or supplier insolvencies mount. Some smaller suppliers already report cash flow pressures, lacking capital buffers to absorb delays.