Government considers support measures for JLR supply chain firms

The Government is considering stepping in to help keep Jaguar Land Rover suppliers trading after the car maker halted production because of a cyber attack.

However, it is not expected to launch a Covid-style furlough scheme for the suppliers despite appeals.

It comes after warnings from unions and politicians that some small suppliers, which produce parts for the car giant, could collapse without urgent financial support.

Jaguar Land Rover paused production at the end of August after being targeted by hackers.

Earlier this week, JLR extended its pause in production until October 1 as it continues to tackle the impact of the shutdown.

On Tuesday, ministers met firms in JLR’s supply chain to discuss pressures on their operations since the attack.

The Government is now considering buying component parts typically used by JLR from their suppliers in order to keep them trading until production restarts at the car giant.

The BBC reported that another option being considering would involve Government-backed loans for suppliers.

The Government could also purchase and stockpile car parts.

Unions have, however, called on ministers to introduce a Covid-style furlough scheme for workers at affected suppliers.

It is understood that Government officials are likely to rule this out because of the significant costs involved.

MPs on the Government’s Business Select Committee are set to meet JLR suppliers later on Thursday and relay their discussions to ministers.

Experts have warned that JLR could face a hit worth around £120 million to its finances from the factory shutdown, with this increasing significantly for every week it is extended.

The company has halted production at its factories in Halewood on Merseyside and Solihull in the West Midlands, and its engine manufacturing site in Wolverhampton. The sites typically build more than 1,000 cars each day.