Business

JLR suppliers with ‘days of cash’ left

By Sarah Julian

Copyright bbc

JLR suppliers with 'days of cash' left

One idea the government is exploring is for it to buy the component parts built by the suppliers to keep them in business until JLR’s production lines are up and running, and then sell on those parts to JLR.

Ms Edwards said the businesses were pleased to hear it was an option being discussed but believed there would be “logistical challenges”.

“This is a ‘just in time’ operation, so storing those parts, making sure they’re not damaged, making sure that quality control is intact would be difficult,” she said.

“One of the thoughts [from the suppliers] therefore was that you could buy forward, so you’d essentially place the orders knowing you were going to start production but pay now. That’s an option they thought was more likely.”

Addressing the role of the government in supporting the supply chain, the MP said: “This is JLR and their issue, it shouldn’t really lie with the taxpayer, but it may be the taxpayer needs to step in temporarily.”