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 shuts down production
Production lines have remained silent since the attack in August forced the company to close 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 rising that small businesses could face collapse during the prolonged shutdown. Opposition leader Sir Keir Starmer described the situation as urgent but admitted no concrete support plan exists yet. He stressed that many suppliers face severe hardship through no fault of their own.
Recovery efforts show progress
Jaguar Land Rover confirmed its recovery programme is firmly under way. The firm said its global logistics centre, which delivers spare parts, is returning to full operations. The company added its financial system for processing wholesale sales is back online. This allows vehicles to be sold and registered more quickly, providing vital cash flow. The manufacturer acknowledged the production halt created a tough period for all connected with the company. No new cars are being built, and thousands of staff remain at home with no set return date.
Workforce and suppliers hit hard
Jaguar Land Rover normally produces around 1,000 cars per day at its plants in Solihull, Wolverhampton, and Halewood. Since 1 September, employees have been told to stay home. About 30,000 people work directly for the company, with another 100,000 in its supply chain. Some suppliers depend entirely on Jaguar Land Rover, while others also serve different carmakers. Industry figures are calling for urgent support for suppliers whose businesses are now under threat from the knock-on effects of the cyber-attack.
Government weighs support measures
One proposal under review is that the government could buy components from suppliers to keep them in business until production resumes. But several suppliers doubt such a scheme will work. One supplier said officials do not understand the complexity of the industry and insisted businesses need immediate help, not promises. The prime minister said the business secretary is working nonstop with suppliers to create a practical support plan.
Industry Minister Chris McDonald welcomed the progress on restarting production. He said the move will help stabilise cash flow across the supply chain. He added that the government will continue its discussions with Jaguar Land Rover and its partners.
Urgent calls for financial rescue
Unions have asked ministers to consider a furlough-style scheme similar to Covid support. Government sources, however, said this option is ruled out because of costs. 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 financial impact cripples parts of the supply chain.
Stockpiling parts is another idea, but experts warn of serious logistical problems. Jaguar Land Rover’s production relies on precise timing, with every part arriving at the right moment. Government-backed loans are also being considered, but many suppliers fear taking on more debt in already difficult circumstances.
