The UK government has stepped in to underwrite a £1.5 billion loan guarantee for Jaguar Land Rover (JLR), following a major cyber-attack that disrupted production across its facilities. Britain’s largest automotive employer is now preparing to restart engine manufacturing in early October, according to reports.
Cyber-attack brought production to a halt
The cyber incident, which struck JLR earlier this year, forced temporary shutdowns at several of the company’s plants. The disruption affected engine manufacturing and halted the supply chain for vehicles under the Jaguar and Land Rover brands. The scale of the attack highlighted the vulnerability of automotive production lines to digital threats, with ripple effects across suppliers and dealers.
Government intervention to stabilise operations
In response, the UK Treasury confirmed that it will provide a loan guarantee worth £1.5 billion, aimed at securing JLR’s immediate financial stability and supporting the resumption of manufacturing. The move underscores the strategic importance of JLR, which employs around 30,000 people in the UK and sustains tens of thousands more jobs through its supply chain. Ministers described the intervention as essential to protect both the company and the wider automotive sector.
Restart of engine production planned
Reports suggest JLR plans to restart engine production in early October, following weeks of intensive work to restore systems and strengthen cyber defences. The restart is viewed as a critical milestone in the recovery process, with analysts noting that the company’s ability to ramp up production quickly will be key to meeting demand and limiting financial losses.
Wider implications for the car industry
The attack has reinforced concerns within the automotive sector about cybersecurity preparedness, especially as modern vehicles and manufacturing systems become increasingly digitalised. Industry experts argue that JLR’s experience could prompt other manufacturers to accelerate investment in cyber resilience. For the UK government, the episode highlights the need to protect strategically important industries from both digital and financial shocks.
REFH – Newshub, 28 September 2025
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