Jaguar Land Rover has begun a phased restart of operations following a major cyber-attack. Some IT systems are now functional, and the company is processing overdue supplier payments with expanded invoicing capacity.
Cyber-attack halts production
The August attack forced Jaguar Land Rover to shut down IT networks and suspend car 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 growing risk of collapse. Opposition leader Sir Keir Starmer called the situation urgent but admitted no support plan has been finalised. He stressed that suppliers are suffering through no fault of their own.
Recovery programme progresses
Jaguar Land Rover confirmed its recovery programme is under way. The global logistics centre, which delivers spare parts, has returned to full operation. Its wholesale financial system is also back online, allowing faster vehicle sales and registrations that improve cash flow. The manufacturer 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.
Jobs and suppliers feel impact
The company normally produces about 1,000 vehicles per day at its factories in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been told to stay home. Jaguar Land Rover employs around 30,000 people directly, with another 100,000 linked to its supply chain. Some suppliers depend entirely on the firm, while others serve multiple carmakers. Calls for government support are increasing as suppliers face mounting financial pressure.
Government evaluates support options
Officials are considering buying parts from suppliers to keep them afloat until production resumes. Many suppliers doubt the plan will work. One firm said ministers do not understand the complexity of the industry and requested practical help rather than promises. The prime minister said the business secretary is working closely with suppliers to design a viable solution.
Industry Minister Chris McDonald welcomed progress on restarting operations. He said the recovery will improve cash flow across supply chains and added that the government will maintain close contact with Jaguar Land Rover and its partners.
Suppliers issue urgent warnings
Unions have called for a furlough-style scheme similar to Covid support. Ministers 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, threatening the supply chain.
Stockpiling parts is under consideration but poses significant logistical challenges. Jaguar Land Rover’s production relies on precise timing, with each part arriving exactly when needed. Government-backed loans are also being explored, though many suppliers remain hesitant to take on additional debt during the crisis.
