Jaguar Land Rover has started a phased restart of operations after a crippling cyber-attack. Several IT systems are now running again, and the company is clearing overdue supplier payments through expanded invoicing capacity.
Attack forced halt in production
The August cyber-attack forced Jaguar Land Rover to shut down IT systems and suspend car production. Its factories will remain closed until at least next month. The prime minister said the government is working around the clock on a supplier support package. Growing concerns suggest smaller firms could collapse if disruption continues. Opposition leader Sir Keir Starmer called the crisis urgent but admitted no finalised plan exists. He stressed that suppliers are struggling through no fault of their own.
Recovery plan in motion
Jaguar Land Rover said its recovery programme is firmly under way. The global logistics centre, which supplies spare parts, has returned to full operation. The wholesale financial system is also back online, enabling faster sales and registrations that secure vital cash flow. The company admitted the situation is difficult for employees and partners. No vehicles are currently being built, and staff remain at home with no confirmed return date.
Jobs and supply chain under pressure
The carmaker 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 30,000 people, while another 100,000 rely on its supply chain. Some suppliers depend entirely on the firm, while others work with multiple carmakers. Calls for government intervention are intensifying as suppliers face mounting financial strain.
Government explores possible aid
Officials are considering buying parts from suppliers to keep them afloat until production restarts. Many companies doubt the idea will succeed. One supplier said ministers do not understand the industry’s complexity and demanded real assistance, not promises. The prime minister insisted the business secretary is working closely with suppliers to find a workable solution.
Industry Minister Chris McDonald welcomed the progress in restarting systems. He said recovery will strengthen cash flow across supply chains. He added the government will keep close contact with Jaguar Land Rover and its partners.
Urgent warnings from industry
Unions have urged ministers to adopt a furlough-style scheme similar to Covid support. The government has rejected this 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, disrupting supply chains.
Stockpiling parts remains under discussion, though experts warn of serious logistical problems. Jaguar Land Rover’s production system relies on parts arriving exactly on time. Government-backed loans are also being considered, but many suppliers resist taking on more debt during the crisis.
