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

Jaguar Land Rover was asked to put family houses as a personal guarantee to access emergency loans, and one month after the car manufacturer was shot by a crippled cyber attack, he did not offer a British government support for parts manufacturers.

JLR, England’s largest automotive employer, is planning to pay to senior suppliers in advance while trying to restart production after hacking, but smaller parts producers warn that they are on the verge of collapse without emergency cash injections.

Jlr, which makes Jaguar and Land Rover brands, has not produced a single car since the last day of August. This week he said that he will restart limited production in the coming days ”.

The production ice cream left many parts producers in a desperate position without income.

The British metal merger Confederation (CBM), a lobby group representing many JLR suppliers, warned that without an emergency government intervention, the entire UK automotive supply chain could face irreversible damage, threatening an industry aimed at growing by thousands of business and workers’ government.

Michael Beese, General Manager of Genex UK, who printed metal pieces for several suppliers to JLR, said commercial banks should give personal guarantees that suppliers should expose them to lose their homes and other assets to get an expensive loan.

Beese said, ım I looked to get a loan, but I was given 16% interest and they asked for personal guarantees, ”he said. “Why should I put my job and my family home if I do nothing wrong?”

Beese said that Genex was forced to dismiss some of 17 workers due to cash shortages. Other suppliers said that loans are not an option for some small companies, because they are afraid of violating the rules of managers’ legal responsibilities.

According to two people with interview information, JLR is considering open payments directly to its suppliers to inject cash as quickly as possible. However, it has no direct relationship with most of the supply chain, so it will be rapidly dependent on the transfer of larger suppliers to smaller companies.

Business Secretary Peter Kyle announced on Saturday that the government would give a guarantee for JLR to enter a private loan for £ 1.5 billion, but this agreement was not officially completed. JLR has accepted a new debt of 2 billion pounds from banks without government support.

However, since the government has not promised to cash in JLR or supply chain since the Hack, and several people in the automotive industry said that the credit guarantee of 1.5 billion pounds of credit guarantee to Guardian was running without discussing the key problems caused by the attack before the Liverpool conference.

Government loan guarantee is to indirectly assist part producers, but some small suppliers believe that dripping from the “layer” producers of larger component councils to the smaller “layer” companies in order to supply parts in turn.

Even if a level company receives an invoice for a new job, it is up to 60 days to make these payments to the second layer according to the UK laws.

The CBM told the Guardian that “the second -layer and lower -layer suppliers with any financing in the short term are very little hope, ve and called for direct government support for companies in the chain.

CBM President Steve Morley said: önemli This is the only way to quickly get money to the place where the supply chain is collapsed.

“JLR rightly focuses on receiving payment to primary level suppliers, and it is best to allow them to complete this process.

Throughout the supply chain, thousands of workers were dismissed according to industrial sources.

Beese said: ık We continued to work on our employees, we continued to work to keep our employees at work, but we were exhausted.

An option proposed by the CBM is to use the British Business Bank’s growth guarantee program, which the government lends to smaller businesses. Other suppliers previously asked ministers a temporary freezing for some kind of support for tax invoices and workers’ wages.

A source of workers said: “The government, JLR and its suppliers, have acted quickly to ensure that they can get support as soon as possible, given tens of thousands of jobs depending on the business.”

Small suppliers also asked JLR to be able to communicate better on the progress of restarting from production, so that they can have a better picture of how much they should survive without order.

India’s JLR, which belongs to TATA, could not give precise restarts, so he could not order for pieces because he had to rebuild all production systems. JLR set up a help table for suppliers.

The government’s labor department was approached for a comment. British Is Bank avoided commenting.