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Government mulls financial support for JLR supply chain firms | Government mulls financial support for JLR supply chain firms |
(about 1 hour later) | |
The government is looking at ways to financially support the companies in Jaguar Land Rover's (JLR) supply chain. | |
JLR halted car production at the end of August after a cyber attack forced it to shut down its IT networks. Its factories remain suspended until next month at the earliest. | JLR halted car production at the end of August after a cyber attack forced it to shut down its IT networks. Its factories remain suspended until next month at the earliest. |
Fears are growing that some suppliers, in particular the smaller firms who solely rely on JLR's business, could go bust without support. | Fears are growing that some suppliers, in particular the smaller firms who solely rely on JLR's business, could go bust without support. |
One idea being explored is the government buying the component parts the suppliers build, to keep them in business until JLR's production lines are up and running again. | One idea being explored is the government buying the component parts the suppliers build, to keep them in business until JLR's production lines are up and running again. |
Unions had called for a Covid-style furlough scheme, but ministers have ruled this out given its likely cost, sources have told the BBC. | |
Another option being considered is providing government-backed loans to suppliers, though this is understood to be out unpopular with suppliers. | |
The purchase and stockpiling of car parts by the government is also an option on the table, but this would present considerable logistical challenges. | |
JLR's manufacturing process relies on the right part arriving at the right place, at the right time. | |
However, industry experts agree doing nothing risks firms in the supply chain, which employs tens of thousands of workers, facing bankruptcy. | |
The Business and Trade Select Committee is due to meet on Thursday afternoon to hear testimonies from businesses in JLR's supply chain. | The Business and Trade Select Committee is due to meet on Thursday afternoon to hear testimonies from businesses in JLR's supply chain. |
This evidence will be shared with the government afterwards. | |
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