JLR Seeks £2 Billion Emergency Loan to Absorb Financial Shocks After Cyberattack
Published: September 2025 | Titanium Tribune
The automotive industry is currently witnessing a massive financial scramble. Jaguar Land Rover (JLR), the luxury carmaker owned by Tata Motors Ltd., is urgently raising a £2 billion ($2.7 billion) loan from global banks. This move comes as the company seeks to ease the immense financial strain caused by a recent cyberattack that forced it to halt production globally.
The Crisis: Why JLR Needs the Massive Loan
The unexpected cyberattack paralyzed JLR's production system. For a modern, complex automotive company, a prolonged shutdown doesn't just mean lost revenue; it creates chaos throughout the entire supply chain. JLR's plants in the UK, Slovakia, Brazil, and India have been out of action since the beginning of the month.
- Revenue Loss: The inability to manufacture and sell vehicles immediately impacts cash flow.
- Supplier Backlog: JLR is struggling to clear payments owed to its suppliers, many of whom operate on thin margins.
By raising this debt, JLR aims to demonstrate that it has the liquidity to absorb losses, normalize operations, and restore confidence in the market and its supplier network.
The Financial Lifeline: Loan Details and Participants
The new foreign currency facility is an 18-month credit facility priced at about 110 basis points over SOFR (Secured Overnight Funding Rate). Major global banks participating include:
- Citigroup Inc.
- Mitsubishi UFJ Financial Group (MUFG)
- Standard Chartered Bank Plc
Context: Beyond the £2 Billion
The irony of this loan requirement is that JLR had only recently declared itself net debt-free. This £2 billion emergency financing comes on top of a £1.5 billion loan guarantee secured earlier from the UK government.
The Road to Recovery
Some of JLR’s critical systems are now back online, enabling payment clearance, dealer parts distribution, and vehicle sales. The company aims to restart limited manufacturing operations by October 1st. However, full recovery will take time, and this loan is crucial for bridging the gap.
Bottom Line: JLR’s survival depends on quickly restoring operations and regaining market confidence. The coming weeks will be decisive for the luxury carmaker’s future.