Jaguar Land Rover has started a phased restart of its operations after a major cyber-attack. Parts of its IT systems are running again, and the company is clearing a backlog of supplier payments thanks to expanded invoicing capacity.
Cyber-attack forces production halt
Production lines have remained silent since the attack in August forced the company to shut down its IT networks. Factories will not reopen before next month at the earliest. The prime minister said the government is working around the clock on a support package for suppliers. Concerns are growing that small businesses in particular could face collapse during the prolonged shutdown. Opposition leader Sir Keir Starmer called the situation urgent but admitted no concrete support plan exists yet. He stressed that many suppliers face severe hardship through no fault of their own.
Company recovery programme gains momentum
Jaguar Land Rover said its recovery programme is firmly under way. The firm confirmed its global logistics centre, responsible for supplying spare parts, is returning to full operations. The company added that its financial system for processing wholesale sales is back online. This means vehicles can be sold and registered faster, securing much-needed cash flow. The carmaker admitted the halt in production created a difficult period for all connected with the company. No new cars are being built, and many staff remain at home without a clear return date.
Massive impact on workforce and suppliers
Jaguar Land Rover usually produces around 1,000 cars per day at its factories in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been told to stay home. Around 30,000 people are directly employed by the firm, with another 100,000 in its supply chain. Some suppliers rely solely on Jaguar Land Rover, while others also serve other carmakers. Industry voices are demanding support for suppliers whose businesses are at risk due to the knock-on effects of the cyber-attack.
Government explores support options
One option under discussion is that the government could buy parts from suppliers to keep them afloat until production resumes. However, several suppliers doubt such a scheme will succeed. One supplier complained the government does not grasp the complexity of the industry and insisted businesses need practical help, not promises. The prime minister said the business secretary is working nonstop with suppliers to develop a workable support plan.
Industry Minister Chris McDonald described the move towards restarting production as welcome progress. He said the restart will help improve cash flow across the supply chain. He added that the government will maintain close dialogue with Jaguar Land Rover and its partners.
Calls for urgent financial lifeline
Unions have urged ministers to consider a furlough-style scheme similar to the Covid support plan. Government sources, however, said this option is off the table due to cost concerns. After a private meeting between suppliers and the Business and Trade Select Committee, chair Liam Byrne warned the chancellor that some firms have only weeks before the crisis disrupts parts of the supply chain.
Stockpiling car parts is one option, but experts warn it brings major logistical hurdles. Jaguar Land Rover’s production relies on precise timing, with every part arriving exactly when needed. Another idea under discussion is government-backed loans for suppliers, but many in the industry remain reluctant to take on more debt.
