Jaguar Land Rover has begun a phased recovery of its operations after a damaging cyber-attack. Some IT systems are running again, and the company is clearing overdue supplier payments with improved invoicing capacity.
Production lines remain silent
The August attack forced Jaguar Land Rover to shut down its IT networks and suspend production. Factories will not reopen until next month at the earliest. The prime minister said the government is working tirelessly on a support package for suppliers. Small businesses in the supply chain are under growing threat of collapse. Opposition leader Sir Keir Starmer called the crisis urgent but admitted no support plan is ready. He stressed that many firms are suffering through no fault of their own.
Recovery efforts continue
The company confirmed its recovery programme is firmly under way. Its global logistics centre, which supplies spare parts, is now back in full operation. The financial system for wholesale vehicle sales has also returned online. This allows faster registration and delivery of vehicles, improving cash flow. Jaguar Land Rover admitted this remains a hard time for all linked to the firm. New cars are not being built, and staff have no confirmed return date.
Thousands affected by shutdown
Jaguar Land Rover normally builds around 1,000 cars daily at factories in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been ordered to stay home. About 30,000 people are directly employed by the company, with another 100,000 working in its supply chain. Some suppliers rely entirely on Jaguar Land Rover, while others supply several carmakers. Demands for government support are growing louder as suppliers face financial strain.
Government faces tough choices
One option under consideration is for the government to purchase parts from suppliers to keep them afloat. But suppliers remain sceptical. One firm said officials do not understand the industry’s complexity and called for real help, not promises. The prime minister said the business secretary is working day and night with companies to find solutions.
Industry Minister Chris McDonald welcomed the steps towards restarting production. He said the progress helps restore cash flow across the supply chain. He added that the government will continue talks with Jaguar Land Rover and its partners.
Industry warns of collapse
Unions have demanded a furlough-style scheme similar to Covid support, but ministers have ruled this out due to costs. After a private meeting with suppliers, Business and Trade Select Committee chair Liam Byrne warned the chancellor that some firms have only weeks before collapse disrupts supply chains.
Stockpiling car parts is being discussed, but experts say it poses huge logistical problems. Jaguar Land Rover’s production system depends on parts arriving at the right place at the right time. Government-backed loans are another option, but many suppliers resist taking on more debt during the crisis.
