1.5 billion pounds for Jaguar Land Rover’s survival!
This page is translated from the original post "1,5 milliard de livres pour assurer la survie de Jaguar Land Rover !" in French.
- 29/09/2025 15:20
To save Jaguar Land Rover and prevent a domino effect with dramatic consequences, the British government has chosen to act.
The government has indeed guaranteed a bank loan of 1.5 billion pounds in favor of Jaguar Land Rover (JLR), which has been hit hard by a cyberattack that has put its factories out of operation since late August.
If preserving flagship brands like Jaguar or Land Rover was a significant factor, this decision is primarily aimed at protecting jobs in the West Midlands, Liverpool, and across the entire country. With 30,000 direct employees and nearly 100,000 in the supply chain, the JLR ecosystem is a key national industrial pillar.
The extended closure of production sites — not a single car has been assembled since early August — endangers the hundreds of SMEs that supply parts and components daily. Some have already alerted Parliament, as they have only a few days of cash flow remaining. Without this support, JLR’s production halt, estimated to result in approximately £50 million in weekly losses, risks turning into a major social crisis.
A New More Vulnerable World?
According to the BBC, the mechanism chosen, the Export Development Guarantee (EDG), illustrates a pragmatic approach. It is a public guarantee allowing export-oriented companies to secure their financing. In simple terms, the government does not directly provide the funds but reduces the risk for banks that lend them.
JLR, owned by the Indian group Tata Motors, will have five years to repay this loan, which will primarily be used to settle overdue invoices with suppliers. This is the first time that such government aid has been triggered following a cyberattack, evidence that digital threats are now recognized as a major industrial risk.
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We can hope that London’s gesture paves the way for a broader reflection on the resilience of strategic sectors beyond the “whatever it takes” approach. Because if cars do not run without gasoline or electricity, they also do not run without a firmly supported network of SMEs.
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