Jaguar Land Rover has begun a phased restart of operations following a major cyber-attack. Some IT systems are back online, and the company is processing overdue supplier payments with expanded invoicing capacity.
Cyber-attack stops production
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 around the clock on a support package for suppliers. Smaller firms in the supply chain risk 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 facing difficulties through no fault of their own.
Recovery programme progresses
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 boost vital cash flow. The manufacturer admitted the production halt 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 pressure
The company usually produces about 1,000 vehicles daily 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 tied to its supply chain. Some suppliers rely entirely on the firm, while others serve multiple carmakers. Calls for urgent government support are increasing as suppliers face growing financial strain.
Government explores support measures
Officials are considering plans for the government to purchase parts from suppliers until production resumes. Many suppliers doubt the approach will succeed. 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 develop a viable solution.
Industry Minister Chris McDonald welcomed progress in restarting operations. He said recovery will strengthen cash flow across supply chains and added that the government will maintain close dialogue with Jaguar Land Rover and its partners.
Suppliers warn of collapse
Unions have urged ministers to implement 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 components remains under discussion, though experts warn of serious logistical challenges. Jaguar Land Rover’s production depends on precise timing, with each part arriving exactly when needed. Government-backed loans are also being considered, but many suppliers remain reluctant to take on additional debt during the crisis.
