Jaguar Land Rover has begun a phased restart of operations following a serious cyber-attack. Some IT systems are now working again, and the company is processing overdue supplier payments with increased invoicing capacity.
Cyber-attack halts vehicle 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 round the clock on a support package for suppliers. Smaller firms in the supply chain face growing risk of collapse if the shutdown continues. Opposition leader Sir Keir Starmer called the situation urgent but admitted no finalised plan exists. He stressed that suppliers are struggling through no fault of their own.
Recovery programme takes shape
Jaguar Land Rover said its recovery programme is firmly under way. Its global logistics centre, which supplies spare parts, has returned to full operation. The wholesale financial system has also been restored, allowing faster vehicle 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.
Jobs and supply chain under pressure
Jaguar Land Rover normally produces about 1,000 vehicles daily at its factories in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been told to stay home. The company employs around 30,000 people directly, with another 100,000 connected to its supply chain. Some suppliers depend entirely on Jaguar Land Rover, while others provide parts to multiple carmakers. Calls for urgent government support are increasing as suppliers face mounting financial strain.
Government explores support options
Officials are considering plans for the government to purchase parts from suppliers until production resumes. Many suppliers doubt this approach will succeed. One firm said ministers do not understand the industry’s complexity and called for practical help rather than promises. The prime minister said the business secretary is working closely with suppliers to create 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 warn of looming collapse
Unions have called for a furlough-style scheme similar to Covid support. Ministers rejected the idea 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 remains under discussion, though experts warn of major logistical challenges. Jaguar Land Rover’s production relies on precise timing, with every part arriving exactly when needed. Government-backed loans are also being explored, but many suppliers are hesitant to take on more debt during the crisis.
