Jaguar Land Rover secures £1.5bn UK loan guarantee following cyberattack

The UK government has provided a loan guarantee of up to £1.5 billion for Jaguar Land Rover, which has suspended production for a month following a cyberattack. The decision was announced on September 28 by Business Secretary Peter Kyle.

Hackers breached JLR's systems on August 31, and since then the company has been unable to resume production, putting at risk the jobs of around 200,000 workers across its supply chain, the Financial Times reported.

To support supplier liquidity, JLR will be able to secure a five-year bank loan backed by UK Export Finance, which will cover up to 80% of the risk for lenders.

In its statement, the government justified the move by emphasizing JLR’s significance to the UK economy, with the Chancellor of the Exchequer calling the company "the jewel in the crown of our economy."

However, experts warn of the "moral hazard" of state intervention.

It emerged that JLR did not carry cyberattack insurance. Jamie McCall, a cybersecurity expert at the Royal United Services Institute, cautioned that government support might discourage other firms from purchasing cyber insurance or investing in protection.

"Will every cyberattack now lead to demands for taxpayer-funded assistance? Will companies be less inclined to insure themselves against such risks?" echoed Tom Cloherty, Executive Director at the Institute of Economic Affairs.

Earlier, JLR acknowledged that the cyberattack had led to a data leak. In 2024, as part of its transition to an all-electric brand, Jaguar also unveiled a redesigned logo.