Jaguar Land Rover has launched a phased recovery after a large-scale cyber-attack. Some IT systems are now restored, and the company is processing overdue supplier payments with strengthened invoicing capacity.
Cyber-attack forced shutdown
The attack in August forced Jaguar Land Rover to close its IT networks and halt production lines. Its factories will stay closed until at least next month. The prime minister said the government is working nonstop on a support package for suppliers. Growing concerns suggest smaller firms could collapse if the stoppage continues. Opposition leader Sir Keir Starmer called the crisis urgent but admitted no plan is finalised. He stressed suppliers are facing severe hardship despite not being at fault.
Company recovery shows progress
Jaguar Land Rover confirmed its recovery programme is firmly in motion. The company reported its global logistics centre, which provides spare parts, is back in full operation. Its financial system for wholesale vehicle sales has also been restored. This step allows faster sales and registrations, boosting vital cash flow. The firm admitted that the production halt created a difficult period for workers and partners. With no new cars built, staff remain at home without a clear return date.
Thousands affected by production freeze
Jaguar Land Rover typically builds about 1,000 vehicles a day at its sites in Solihull, Wolverhampton, and Halewood. Since 1 September, employees have been told to stay home. Around 30,000 people work directly for the company, while another 100,000 jobs depend on its supply chain. Some firms supply only Jaguar Land Rover, while others work with several carmakers. Calls are increasing for government support to protect suppliers at risk.
Government examines solutions
One proposal would see the government buy parts from suppliers until production resumes. But suppliers doubt such a scheme would succeed. One firm said officials do not grasp the industry’s complexity and demanded real assistance instead of promises. The prime minister insisted the business secretary is working intensively with suppliers to find a solution.
Industry Minister Chris McDonald called the progress toward restarting operations welcome news. He said the steps help cash flow across the supply chain. He added that the government will maintain dialogue with Jaguar Land Rover and its suppliers.
Suppliers warn of looming collapse
Unions have urged ministers to create a furlough-style scheme similar to Covid support, but sources said the high cost rules it out. After a private meeting with suppliers, Business and Trade Select Committee chair Liam Byrne warned the chancellor that some firms have only weeks before collapse disrupts the supply chain.
Stockpiling parts is another option, though it would create serious logistical hurdles. Jaguar Land Rover’s system relies on exact timing, with every part arriving in sequence. Government-backed loans are also under review, but many suppliers resist taking on more debt during such a crisis.
