The Government is considering stepping in to help keep Jaguar Land Rover suppliers trading after the car maker halted production because of a cyber attack.
However, it is not expected to launch a Covid-style furlough scheme for the suppliers despite appeals.
It comes after warnings from unions and politicians that some small suppliers, which produce parts for the car giant, could collapse without urgent financial support.
Jaguar Land Rover paused production at the end of August after being targeted by hackers.
Earlier this week, JLR extended its pause in production until October 1 as it continues to tackle the impact of the shutdown.
Prime Minister Sir Keir Starmer said he is “really concerned” about the impact on JLR and the businesses in its supply chain, with the Department for Business working 24/7 on the issue.
On Tuesday, ministers met firms in JLR’s supply chain to discuss pressures on their operations since the attack.
The Government is now considering buying component parts typically used by JLR from their suppliers in order to keep them trading until production restarts at the car giant.
The BBC reported that another option being considering would involve Government-backed loans for suppliers.
The Government could also purchase and stockpile car parts.
Unions have, however, called on ministers to introduce a Covid-style furlough scheme for workers at affected suppliers.
It is understood that Government officials are likely to rule this out because of the significant costs involved.
MPs on the Government’s Business Select Committee are set to meet JLR suppliers later on Thursday and relay their discussions to ministers.
Experts have warned that JLR could face a hit worth around £120 million to its finances from the factory shutdown, with this increasing significantly for every week it is extended.
The company has halted production at its factories in Halewood on Merseyside and Solihull in the West Midlands, and its engine manufacturing site in Wolverhampton. The sites typically build more than 1,000 cars each day.
Speaking to ITV Central on Thursday, Sir Keir said: “I’m really concerned for JLR but I’m equally concerned about the other businesses that feed into JLR and the impact it’s having on them.
“The Department of Business is working 24/7 with those businesses to see what we can do.”
The chairman of the Business and Trade Committee, Liam Byrne, has written to the Chancellor with a series of questions on the measures available to urgently support suppliers.
