Jaguar Land Rover has launched a phased restart of operations after a major cyber-attack. Several IT systems are back online, and the company is working through overdue supplier payments with stronger invoicing capacity.
Attack brought factories to a standstill
The August cyber-attack forced Jaguar Land Rover to shut down IT systems and suspend car production. Its 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 rising that smaller firms could collapse if the shutdown continues. Opposition leader Sir Keir Starmer called the situation urgent but admitted no support plan is ready. He said suppliers face hardship through no fault of their own.
Progress in recovery programme
The company said its recovery plan is firmly under way. Jaguar Land Rover confirmed its global logistics centre, which distributes spare parts, is now back to full operation. Its financial system for wholesale vehicle sales has also been restored. This allows faster sales and registrations, boosting vital cash flow. The manufacturer admitted the halt in production has been difficult for staff and partners. With no new cars produced, workers remain at home without a set return date.
Jobs and suppliers under threat
Jaguar Land Rover usually produces about 1,000 vehicles each day at its factories in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been told to stay home. The company employs about 30,000 people directly, with another 100,000 tied to its supply chain. Some firms rely solely on Jaguar Land Rover, while others serve several manufacturers. Calls for urgent support are growing as suppliers face financial strain.
Ministers weigh possible solutions
One proposal is for the government to buy parts from suppliers until production restarts. Many firms doubt the scheme would succeed. One supplier said officials do not understand the complexity of the industry and called for practical help, not promises. The prime minister said the business secretary is working intensively with suppliers to design a viable plan.
Industry Minister Chris McDonald welcomed the steps toward restarting production. He said the progress will improve cash flow across supply chains. He added that the government will maintain close discussions with Jaguar Land Rover and its partners.
Industry sounds alarm
Unions have urged ministers to consider a furlough-style scheme similar to Covid support. Ministers have rejected the idea, citing high costs. 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 supply chains.
Stockpiling parts is another option under review, but experts warn it brings major logistical challenges. Jaguar Land Rover’s production system 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 more debt during the crisis.
