Ministers' claims of helping Jaguar Land Rover (JLR) with its supply chain after a cyber-attack are being questioned as the carmaker has not drawn down on a £1.5bn loan facility guaranteed by the government.
The UK automotive industry was already under pressure due to an extended period of low demand, and suppliers laid off thousands of workers to save cash. JLR's shutdown caused chaos in the supply chain, with many parts makers struggling to stay afloat. The company's support scheme for suppliers only helped tier 1 suppliers, leaving lower tiers without immediate payment.
The government announced the £1.5bn loan guarantee in an effort to support JLR and its supply chain. However, no money has been drawn down from the facility, and JLR used its existing large cash reserves to fund its scheme instead. Suppliers claim that they have received some much-needed cash flow, but many are still facing significant financial pressure.
The Confederation of British Metalforming (CBM), a lobby group representing JLR's suppliers, says that more support is needed to help those further down the supply chain. The crisis prompted calls for government intervention before the Labour party conference at the end of September, when the loan guarantee was announced.
Ministers' claims of taking credit for helping JLR and its supply chain have been met with skepticism from suppliers, who feel that they were unfairly included in the government's messaging. An executive at one parts maker said that the government "did nothing" to help them. The Financial Times reported that only a small portion of the loan guarantee had gone into JLR's accounts, and none had reached its suppliers.
The ability to access the loan guarantee may have helped JLR marginally by lowering its risk of breaching other banking agreements, but it is unlikely to have benefited suppliers. A government spokesperson defended the loan guarantee, saying that it was put in place at a "critical moment" to support JLR and its supply chain. However, the lack of money drawn down from the facility has raised questions about the effectiveness of the government's response.
The recovery is going better than expected overall, but suppliers still face significant financial pressure. The CBM president said that some parts makers had received much-needed cash flow, but others would start feeling the worst of the squeeze imminently.
The UK automotive industry was already under pressure due to an extended period of low demand, and suppliers laid off thousands of workers to save cash. JLR's shutdown caused chaos in the supply chain, with many parts makers struggling to stay afloat. The company's support scheme for suppliers only helped tier 1 suppliers, leaving lower tiers without immediate payment.
The government announced the £1.5bn loan guarantee in an effort to support JLR and its supply chain. However, no money has been drawn down from the facility, and JLR used its existing large cash reserves to fund its scheme instead. Suppliers claim that they have received some much-needed cash flow, but many are still facing significant financial pressure.
The Confederation of British Metalforming (CBM), a lobby group representing JLR's suppliers, says that more support is needed to help those further down the supply chain. The crisis prompted calls for government intervention before the Labour party conference at the end of September, when the loan guarantee was announced.
Ministers' claims of taking credit for helping JLR and its supply chain have been met with skepticism from suppliers, who feel that they were unfairly included in the government's messaging. An executive at one parts maker said that the government "did nothing" to help them. The Financial Times reported that only a small portion of the loan guarantee had gone into JLR's accounts, and none had reached its suppliers.
The ability to access the loan guarantee may have helped JLR marginally by lowering its risk of breaching other banking agreements, but it is unlikely to have benefited suppliers. A government spokesperson defended the loan guarantee, saying that it was put in place at a "critical moment" to support JLR and its supply chain. However, the lack of money drawn down from the facility has raised questions about the effectiveness of the government's response.
The recovery is going better than expected overall, but suppliers still face significant financial pressure. The CBM president said that some parts makers had received much-needed cash flow, but others would start feeling the worst of the squeeze imminently.
theyre tryna take all da credit 4 helpin out w/ da cyber-attack but it seems like dey didnt do enuf 4 da suppliers 
like, da loan guarantee was a big deal but dey never actually drew down any cash from it 
jlr used its own cash reserves instead which is just lazy 
& now suppliers r still strugglin 2 make ends meet 
dey should've done more to help those lower down da supply chain 
...CBM's call for more support is def legit, they should be heard out by ministers...i think govts need to do better in these situations, just providing a lifeline without making sure it actually reaches the people who need it most
I don't think the gov is being totally honest about helping out JLR and its suppliers 
the truth is, JLR just used their own cash reserves to fund their scheme 
ministers are trying to spin this like they're saving JLR and its suppliers, but really it just shows how little help the gov is actually giving out. £1.5bn loan guarantee and not a penny drawn down? that's just a PR stunt! 
suppliers have been struggling for months and still haven't gotten any significant help from the gov. it's all about JLR and its big cash reserves, while everyone else is left to deal with the financial pressure on their own. 
. Can someone please get a breakdown on how that money's being used? 
. It's not fair that they were only partially helped by the government's £1.5bn loan guarantee 
. It's like they were just given a Band-Aid on the supply chain problem 
... all these claims about the government saving JLR's bacon and helping its suppliers sound like just that - claims 
. And now suppliers are still reeling from the shutdown and struggling to make ends meet... yeah, let's not get too caught up in the PR spin here 
.
It's time to stop the spin and start facing the facts... this wasn't exactly a government rescue mission 
.
suppliers r still struggling to make ends meet and the gov just did nothing 
. I mean, £1.5bn is a big chunk of cash, but if it's just being used to prop up JLR and not actually reaching the suppliers, what's the point? 
, but others are still going to feel the pinch soon. The recovery might be better than expected, but it doesn't mean anyone who was hit hard by the shutdown is off the hook just yet 
. We need some real transparency here 
.
. I mean, can you imagine not drawing down on a loan like that? It's like leaving your friends high and dry when they need help the most 
. Suppliers are still reeling from this, and it's going to take time for them to recover 
did they think suppliers would be all like "oh cool, thanks gov" when they just got a few quid? 
.
" - the government's loan guarantee for Jaguar Land Rover seems more like a PR stunt than actual support for its struggling suppliers 
. It feels like a case of "too little, too late" 
.
. The government needs to do better than this... we need real support for our small businesses and industries, not just a PR stunt 
. The CBM rep is spot on saying that some parts makers got a lifeline, but others will soon be feeling the squeeze big time