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The government is looking at ways to financially support the companies in Jaguar Land Rover’s (JLR) supply chain.<\/p>\n
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.<\/p>\n
Fears are growing that some suppliers, in particular the smaller firms who solely rely on JLR’s business, could go bust without support.<\/p>\n
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.<\/p>\n<\/div>\n
Unions had called for a Covid-style furlough scheme, but ministers have ruled this out given its likely cost, sources have told the BBC.<\/p>\n
Another option being considered is providing government-backed loans to suppliers, though this is understood to be out unpopular with suppliers.<\/p>\n
The purchase and stockpiling of car parts by the government is also an option on the table, but this would present considerable logistical challenges.<\/p>\n
JLR’s manufacturing process relies on the right part arriving at the right place, at the right time.<\/p>\n
However, industry experts agree doing nothing risks firms in the supply chain, which employs tens of thousands of workers, facing bankruptcy<\/a>. <\/p>\n The Business and Trade Select Committee is due to meet on Thursday afternoon to hear testimonies from businesses in JLR’s supply chain.<\/p>\n This evidence will be shared with the government afterwards.<\/p>\n<\/div>\n