Jaguar Land Rover has launched a phased restart of operations after a damaging cyber-attack. Some IT systems are restored, and the company is now clearing overdue supplier payments with improved invoicing capacity.
Cyber-attack shut down factories
The attack in August forced Jaguar Land Rover to shut its IT networks and stop production across its sites. Plants will stay 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 growing that smaller firms may collapse if the shutdown continues. Opposition leader Sir Keir Starmer described the situation as urgent but admitted no support plan has been finalised. He said suppliers face severe difficulties beyond their control.
Signs of recovery emerge
Jaguar Land Rover said its recovery programme is progressing. The company confirmed its global logistics centre, which supplies spare parts, has returned to full operation. Its wholesale financial system is also back online, allowing faster sales and registrations that bring vital cash flow. The manufacturer admitted the shutdown has created a difficult period for workers and partners. No cars are being built, and staff remain at home with no set return date.
Workforce and suppliers feel strain
Jaguar Land Rover normally produces around 1,000 cars a day at its factories in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been instructed to stay home. The company employs 30,000 people directly, while another 100,000 depend on its supply chain. Some suppliers rely entirely on Jaguar Land Rover, while others provide parts to several manufacturers. Industry voices are calling for urgent government action to protect these firms.
Ministers consider next steps
One proposal would see the government purchase parts from suppliers to keep them afloat until production restarts. But suppliers doubt such a plan would succeed. One company said ministers do not understand the complexity of the sector and urged immediate help rather than promises. The prime minister said the business secretary is working closely with suppliers to design a practical plan.
Industry Minister Chris McDonald welcomed the progress in restarting systems. He said the recovery helps improve cash flow across supply chains. He added that the government will continue direct talks with Jaguar Land Rover and its partners.
Fears of collapse escalate
Unions have urged ministers to adopt a furlough-style scheme like the Covid plan, but government sources have rejected this due to costs. After a private meeting with suppliers, Business and Trade Select Committee chair Liam Byrne warned the chancellor that some firms may collapse within weeks, endangering supply chains.
Stockpiling components remains under discussion, but experts warn of huge logistical challenges. Jaguar Land Rover’s production process relies on precise timing, with parts arriving exactly when needed. Government-backed loans are also an option, though many suppliers resist taking on more debt during the crisis.
