Jaguar Land Rover has started a phased restart of operations after a major cyber-attack. Some IT systems are functioning again, and the company is clearing overdue supplier payments thanks to expanded invoicing capacity.
Cyber-attack halts production lines
The August attack forced Jaguar Land Rover to shut down its IT networks and suspend vehicle production. The company’s plants will remain closed until at least next month. The prime minister said the government is working around the clock on a support package for suppliers. Smaller businesses in the supply chain are at risk of collapse as the shutdown continues. Opposition leader Sir Keir Starmer called the situation urgent but admitted no support plan is yet finalised. He stressed suppliers are suffering through no fault of their own.
Recovery efforts show progress
Jaguar Land Rover said its recovery programme is firmly in motion. The firm confirmed that its global logistics centre, which supplies spare parts, has returned to full operation. Its financial system for wholesale vehicle sales is also back online. This allows faster sales and registrations, improving much-needed cash flow. The manufacturer admitted the pause in production has created a tough period for staff and partners. No new cars are being built, and employees remain at home without a return date.
Jobs and suppliers at risk
Jaguar Land Rover usually produces about 1,000 vehicles a day at plants in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been instructed to stay home. The company employs around 30,000 people directly, with another 100,000 jobs tied to its supply chain. Some firms supply Jaguar Land Rover exclusively, while others serve several carmakers. Pressure is mounting on the government to support suppliers facing financial danger.
Government considers possible measures
One proposal would see the government purchase parts from suppliers to keep them afloat until production resumes. Many suppliers, however, doubt such a plan would work. One company said officials do not understand the complexity of the industry and demanded real assistance rather than promises. The prime minister said the business secretary is working intensively with suppliers to design a viable support package.
Industry Minister Chris McDonald welcomed Jaguar Land Rover’s progress. He said restarting operations will boost cash flow across supply chains. He added that the government will remain in close contact with the company and its suppliers.
Warnings of looming collapse
Unions have pressed ministers to adopt a furlough-style scheme similar to Covid support. Ministers have rejected this, citing the cost. After a private meeting with suppliers, Business and Trade Select Committee chair Liam Byrne warned the chancellor that some firms may collapse within weeks, endangering supply chains.
Stockpiling components is another idea under review, but experts say it would bring major logistical hurdles. Jaguar Land Rover’s system depends on every part arriving precisely on time. Government-backed loans are also being considered, though many suppliers resist taking on new debt during the crisis.
