'Speed is of the essence' to help firms on a cliff edge in the JLR supply chain - metalforming industry leader says
“Speed is of the essence” to help firms in the JLR supply chain facing a cliff edge with cash running out and jobs hanging in the balance, the Confederation of British Metalforming has warned.
The government is to provide loan guarantees worth £1.5 billion for JLR, which has had to pause production of its car making facilities since being hit by a cyber attack at the end of August, and this has been welcomed by the CBM which represents a large number of firms in the JLR supply chain.
Stephen Morley, president of the CBM, has welcomed the support for JLR, which includes a stipulation that businesses in the supply chain will also be supported, but he has said it’s vital that “funding gets distributed quickly” to protect the UK’s automotive supply chain.
He said: “The Confederation of British Metalforming (CBM) welcomes the government announcement to back JLR with a £1.5billion guaranteed loan.
“This is the type of intervention that the CBM Taskforce, which has been supporting the car maker’s supply chain, has been requesting and we’re pleased to see it come to fruition.
“We are urgently pressing for more details on the support and, importantly, how we make sure the finance cascades down the supply chain and gets to companies who are currently on a cliff edge with cash running out and jobs in the balance.
“If we can make sure this funding gets distributed quickly, we have a great opportunity to protect the UK automotive supply chain…however, speed is of the essence.
“As it rolls out, we are asking CBM members to get in touch if they are finding it difficult to access or if it’s not working for them - that way we can give feedback directly to the government.
“We would like to thank the Minister for Industry Chris McDonald, MP Sarah Coombes and all other local politicians who have worked with us on the Taskforce, listened to our concerns and lobbied for the announcement.
“This isn’t about political point scoring, or which party has done what, this is all about keeping a truly iconic British manufacturing brand flying.”
The CBM looks after the interests of 200 companies focused on manufacturing fasteners, forgings, pressings and cold-rolled and sheet metal products - a large proportion of which supply into Coventry-headquartered JLR, which has large manufacturing bases alongside the M54 near Wolverhampton and Telford, as well as in Solihull.
The car maker, which halted production on September 1, is expected to start up production again within days.
The BBC has reported manufacturing will resume first at the engine facility in Wolverhampton on October 6, with production at other plants having a phased return.
Industry sources, however, have said they expect it to be several weeks before production lines are running at full capacity.
