JLR Restarts UK Plants After £1.5B Loan Guarantee
Jaguar Land Rover (JLR) is set to resume operations at several of its UK plants this week, following a temporary shutdown due to production issues and market challenges. The restart comes after the British government provided a £1.5 billion loan guarantee to support the company's suppliers.
JLR's Solihull plant, which produces the Range Rover and Range Rover Sport models, is scheduled to restart production lines later this week. The company's engine and battery units, along with body and paint shops, will also resume operations on Wednesday. This restart follows a significant drop in wholesale volumes and retail sales in the latest quarter, which was attributed to production stoppages, the planned wind-down of older Jaguar models, and U.S. tariffs.
The company has faced financial pressures due to the shutdown, with estimates suggesting JLR lost around £50 million per week during the pause in production. To support smaller parts suppliers during the restart phase, JLR will offer up-front payments for components. Previously, suppliers were paid 60 days after invoicing, a delay that risked pushing many smaller businesses into financial distress. The JLR incident is the latest in a series of high-profile cyberattacks to hit major UK businesses this year.
The restart of JLR's operations is expected to provide relief to the UK's manufacturing sector, which is heavily dependent on the automotive industry. The government's £1.5 billion loan guarantee, aimed at supporting JLR's suppliers, is also seen as a positive step in mitigating the potential impact of a prolonged shutdown.
