The Labour government is set to announce an emergency rescue package for Jaguar Land Rover as soon as this weekend after the firm was driven into chaos following a cyber attack.
Business secretary Peter Kyle has been in “intense conversations” with JLR and its parent company Tata after fears the knock-on effect of the hack would lead to the firm’s suppliers going bust.
Earlier this week, JLR extended its production shutdown until at least 1 October.
Kyle told The Sun: “JLR and its supply chain can be sure that Government will help in a way that backs industry and supports jobs.”
Concerns had been raised that despite JLR being “highly profitable” the smaller firms who relied on selling parts to JLR could face collapse, The Sun reported.
Kyle: Not my job to ‘run JLR’
Kyle said the government was looking at “energetic and creative ways” to save the firms, which included not ruling out purchasing directly from the suppliers was not operating.
“But I also have high expectations of them as companies [JLR and Tata] to do what’s right for the interest of workers in the supply chain,” he said adding that JLR must “remain in the lead”.
“My job as Secretary of State is not to step in and run JLR,” Kyle added.
Over 33,000 staff work directly for JLR at plants in Solihull, Halewood and Wolverhampton.#
Around a quarter of firms supplying parts to JLR have already paused work or laid off staff, according to the industry bod the Society of Motor Manufacturers and Traders (SMMT).
Mike Hawes, SMMT chief executive, said: “Whatever happens to JLR will reverberate through the supply chain. Some suppliers, maybe up to a quarter, have already had to lay off people”.
“There will be another further 20 to 25 per centconsidering that in the next few weeks”, he added.
