Jaguar Land Rover has begun a phased restart of operations following a serious cyber-attack. Some IT systems are now restored, and the company is addressing overdue supplier payments with enhanced invoicing capacity.
Cyber-attack brings production to a halt
The August cyber-attack forced Jaguar Land Rover to shut its IT networks and suspend vehicle 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 face increasing risk of collapse. Opposition leader Sir Keir Starmer described the situation as urgent but admitted no finalised plan exists. He said suppliers are struggling through no fault of their own.
Recovery programme underway
Jaguar Land Rover confirmed its recovery programme is firmly in progress. The global logistics centre, which provides spare parts, is back in full operation. Its financial system for wholesale vehicle sales has also been restored, enabling faster sales and registrations that boost cash flow. The manufacturer admitted the production shutdown has created a difficult period for staff and partners. No new vehicles are being built, and employees remain at home without a confirmed return date.
Jobs and supply chain under strain
Jaguar Land Rover typically produces about 1,000 cars daily at factories in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been told to stay home. The company directly employs around 30,000 people, with another 100,000 connected to its supply chain. Some suppliers rely solely on Jaguar Land Rover, while others serve multiple manufacturers. Calls for urgent government support are growing as suppliers face mounting financial pressure.
Government examines support options
One proposal is for the government to buy parts from suppliers until production resumes. Many suppliers remain sceptical about the plan’s effectiveness. One firm said officials do not understand the industry’s complexity and demanded real assistance, not promises. The prime minister said the business secretary is working intensively with suppliers to create a practical solution.
Industry Minister Chris McDonald welcomed Jaguar Land Rover’s progress. He said restarting operations will help strengthen cash flow across supply chains. He added that the government will maintain close discussions with the company and its partners.
Suppliers warn of looming collapse
Unions have urged ministers to implement a furlough-style scheme similar to Covid support. Ministers have 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, putting the supply chain at risk.
Stockpiling parts remains under consideration, but 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, but many suppliers are hesitant to take on additional debt during the crisis.
