Jaguar Land Rover has begun a phased restart of operations following a major cyber-attack. Some IT systems are restored, and the company is addressing overdue supplier payments with increased invoicing capacity.
Cyber-attack forces production halt
The August attack forced Jaguar Land Rover to shut down IT networks and suspend vehicle 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 face a growing risk of collapse if the shutdown continues. Opposition leader Sir Keir Starmer described the situation as urgent but admitted no finalised plan exists. He stressed that suppliers are struggling through no fault of their own.
Recovery programme gains ground
Jaguar Land Rover confirmed its recovery programme is under way. Its global logistics centre, which supplies spare parts, has returned to full operation. Its financial system for wholesale vehicle sales is also restored, enabling 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 cars are being built, and staff remain at home without a confirmed return date.
Workforce and suppliers under 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 linked to its supply chain. Some suppliers rely entirely on the firm, while others provide parts to multiple carmakers. Calls for urgent government support are increasing as suppliers face mounting financial strain.
Government considers support measures
Officials are evaluating plans for the government to purchase 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 create a workable solution.
Industry Minister Chris McDonald welcomed the progress in restarting operations. He said the recovery will strengthen cash flow across supply chains and added that the government will continue close dialogue with Jaguar Land Rover and its partners.
Suppliers warn of looming collapse
Unions have called for 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, threatening the supply chain.
Stockpiling parts remains under discussion but poses major logistical challenges. Jaguar Land Rover’s production depends on precise timing, with each part arriving exactly when needed. Government-backed loans are also being explored, though many suppliers are hesitant to take on additional debt during the crisis.
