Jaguar Land Rover suppliers asked to put up homes as loan security after hack

"Small suppliers to Jaguar Land Rover have been asked to put up their family homes as personal guarantees in order to access emergency loans, with no direct UK government support on offer for parts makers a month after the carmaker was hit by a crippling cyber-attack. JLR, Britain's biggest automotive employer, is considering making advance payments to top-tier suppliers as it tries to restart production after the hack, but smaller parts makers warn they are on the brink of collapse without urgent cash injections."

"Michael Beese, the managing director of Genex UK, which presses metal parts for several suppliers to JLR, said commercial banks had said that in order to get an expensive loan, suppliers would need to give personal guarantees that could expose them to losing their houses and other assets. I looked at getting a loan but was quoted interest of 16% and they wanted personal guarantees, Beese said. Why should I put my business and family home on the line when I've done nothing wrong? Beese said he had been forced to lay off some of Genex's 17 workers because of a cash shortage."

"The Confederation of British Metalforming (CBM), a lobby group representing many JLR suppliers, warned that without urgent government intervention the whole of the UK automotive supply chain could face irreversible damage, threatening thousands of jobs and an industry targeted for growth by the Labour government."

Small suppliers to Jaguar Land Rover have been asked to put up family homes as personal guarantees to access emergency loans, and no direct UK government support has been offered to parts makers after a crippling cyber-attack. JLR halted production at the end of August and plans a limited restart, while it considers advance payments to top-tier suppliers to inject cash quickly. Many smaller parts makers report no income for more than a month and warn of collapse without urgent injections. Banks are reportedly offering loans only with high interest and personal guarantees, forcing some firms to lay off staff. Industry groups warn the entire UK automotive supply chain and thousands of jobs are at risk without swift government intervention.

Read at www.theguardian.com