Jaguar Land Rover has begun a phased recovery after a severe cyber-attack. Parts of its IT systems are back online, and the company is tackling a backlog of supplier payments thanks to increased invoicing capacity.
Cyber-attack halts operations
The attack in August forced Jaguar Land Rover to shut down its IT networks and stop production. Factories are expected to remain closed until at least next month. The prime minister said the government is working round the clock on a support package for suppliers. Concerns are mounting that smaller firms could collapse if the shutdown continues. Opposition leader Sir Keir Starmer called the situation urgent but admitted that no final support plan is ready. He stressed suppliers are facing hardship through no fault of their own.
Recovery plan gathers pace
Jaguar Land Rover said its recovery programme is firmly under way. The company confirmed that its global logistics centre, which distributes spare parts, has returned to full operation. Its financial system for wholesale sales has also been restored, allowing vehicles to be sold and registered more quickly. This improvement is delivering vital cash flow. The carmaker admitted the production halt has been a difficult time for everyone linked to the business. New vehicles are not being built, and staff remain at home without a clear return date.
Staff and suppliers under strain
Jaguar Land Rover normally produces about 1,000 vehicles daily at its plants in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been ordered to stay home. The company employs around 30,000 people directly, with another 100,000 jobs tied to its supply chain. Some firms depend entirely on Jaguar Land Rover, while others serve several manufacturers. Industry figures are urging government action to protect suppliers from collapse.
Pressure builds on government
Officials are considering buying components from suppliers to keep them afloat until production resumes. Some suppliers doubt the plan would succeed. One firm said the government does not understand the sector’s complexity and demanded immediate help rather than promises. The prime minister said the business secretary is working day and night with companies to design a workable support plan.
Industry Minister Chris McDonald welcomed progress on restarting operations. He said the recovery steps will help improve cash flow across supply chains. He added that the government will maintain close dialogue with Jaguar Land Rover and its partners.
Urgent warnings from supply chain
Unions have called for a furlough-style scheme like the Covid plan, but ministers have rejected the idea due to costs. After a private meeting with suppliers, Business and Trade Select Committee chair Liam Byrne warned the chancellor that some companies have only weeks before disruption threatens the supply chain.
Stockpiling components remains an option, but experts say it poses major logistical problems. Jaguar Land Rover’s production depends on every part arriving at the right time and place. Government-backed loans are also under discussion, but many suppliers remain unwilling to take on more debt during the crisis.
