Jaguar Land Rover has started a phased restart of operations following a major cyber-attack. Several IT systems are now functioning, and the company is processing overdue supplier payments with increased invoicing capacity.
Cyber-attack stops production
The August attack forced Jaguar Land Rover to shut down IT networks and suspend car production. Factories 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 firms in the supply chain risk collapse if the shutdown continues. Opposition leader Sir Keir Starmer described the situation as urgent but admitted no finalised plan exists. He stressed that suppliers face hardship through no fault of their own.
Recovery programme gains momentum
Jaguar Land Rover confirmed its recovery programme is under way. The global logistics centre, which supplies spare parts, has returned to full operation. Its wholesale financial system is also restored, allowing faster sales and registrations that improve cash flow. The manufacturer admitted the production halt has created a difficult period for employees and partners. No new vehicles are being built, and staff remain at home without a confirmed return date.
Workforce and suppliers under pressure
The company usually produces about 1,000 vehicles per day at its factories in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been told to stay home. Jaguar Land Rover directly employs around 30,000 people, with another 100,000 tied to its supply chain. Some suppliers rely entirely on the firm, while others provide parts to multiple carmakers. Calls for urgent government support are increasing as suppliers face growing financial strain.
Government considers support measures
Officials are examining plans for the government to purchase parts from suppliers until production resumes. Many suppliers doubt the plan will succeed. One firm said ministers do not understand the industry’s complexity and demanded practical help rather than promises. The prime minister said the business secretary is working closely with suppliers to create a viable solution.
Industry Minister Chris McDonald welcomed progress on restarting operations. He said the recovery will help improve cash flow across supply chains. He added the government will continue close talks with Jaguar Land Rover and its partners.
Suppliers warn of potential collapse
Unions have urged ministers to implement a furlough-style scheme similar to Covid support. Ministers rejected this option due to costs. After a private meeting with suppliers, Business and Trade Select Committee chair Liam Byrne warned the chancellor that some firms could collapse within weeks, endangering the supply chain.
Stockpiling components remains under consideration, though experts warn of significant logistical challenges. Jaguar Land Rover’s production depends on precise timing, with each part arriving exactly when needed. Government-backed loans are also being discussed, though many suppliers are reluctant to take on additional debt during the crisis.
