Jaguar Land Rover has launched a phased restart of operations following a severe cyber-attack. Some IT systems are back online, and the company is clearing overdue supplier payments with enhanced invoicing capacity.
Cyber-attack halts 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 nonstop 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 support plan is finalised. 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. Its global logistics centre, which delivers spare parts, has returned to full operation. Its financial system for wholesale vehicle sales is also restored, allowing faster sales and registrations that secure vital cash flow. The company 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 feel pressure
The company normally produces about 1,000 vehicles per day at 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 connected to its supply chain. Some suppliers depend 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 weighs support measures
Officials are examining plans for the government to buy 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 requested practical help rather than promises. The prime minister said the business secretary is working closely with suppliers to design a workable solution.
Industry Minister Chris McDonald welcomed the progress in restarting operations. He said recovery will strengthen cash flow across supply chains and added that the government will maintain close contact with Jaguar Land Rover and its partners.
Suppliers issue warnings of collapse
Unions have urged ministers to implement a furlough-style scheme similar to Covid support. Ministers rejected this option due to high 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 parts remains under consideration but poses major logistical challenges. Jaguar Land Rover’s production relies on precise timing, with each part arriving exactly when needed. Government-backed loans are also being discussed, though many suppliers remain reluctant to take on additional debt during the crisis.
