Jaguar Land Rover Seeks £2 Billion Emergency Funding After Cyberattack

Tata Group-owned Jaguar Land Rover (JLR) has requested £2 billion in emergency funding from a consortium of global banks following a cyberattack in late August that severely disrupted operations, sources familiar with the matter said. The attack, which struck on September 1, forced the company to shut down systems and UK factories, leaving it largely incapacitated. Production at JLR’s plants in the UK, Slovakia, Brazil, and India has come to a standstill, though its Chinese joint venture continues to operate.

The proposed 18-month credit facility includes committed backstop arrangements to ensure the company has sufficient liquidity to offset revenue losses. Top banking partners of the Tata Group, including Standard Chartered Bank, Citi, and MUFG, have agreed to provide the urgent credit line, with plans to syndicate the debt to a broader set of lenders. Terms and pricing of the facility are still under negotiation.

In a parallel move, the UK government announced it would guarantee £1.5 billion of a loan extended by another banking consortium led by HSBC, repayable over five years. The government will cover 80% of the loan under the Export Credit Guarantee Scheme, with the remaining 20% borne by the banks. The measure aims to reassure suppliers concerned about the risk of insolvency amid the sudden revenue drop.

“This is a political intervention, which is why a UK bank had to take the lead,” said one executive. “It’s a significant credit going out in the market. The long-term impact on losses or credit ratings remains uncertain.”

The emergency funding underscores the financial strain on JLR and highlights the broader risks posed by cyberattacks on global manufacturing operations.