Jaguar Land Rover has begun a phased restart of operations following a damaging cyber-attack. Several IT systems are back online, and the company is processing delayed supplier payments with greater invoicing capacity.
Cyber-attack forced production to stop
The August attack forced Jaguar Land Rover to shut down its IT networks and halt car production. Its plants are expected to remain closed until at least next month. The prime minister said the government is working continuously on a support package for suppliers. Fears are growing that smaller firms could collapse as the shutdown drags on. Opposition leader Sir Keir Starmer called the situation urgent but admitted a support plan is not yet ready. He said many suppliers are struggling despite not being responsible for the crisis.
Signs of recovery emerge
Jaguar Land Rover said its recovery programme is firmly under way. The company confirmed its global logistics centre, which delivers spare parts, has returned to full operation. Its wholesale financial system is also restored, enabling faster sales and registrations that bring in vital cash flow. The manufacturer admitted the shutdown has been extremely difficult for all those linked to the business. With no new cars built, staff remain at home and have no fixed return date.
Impact spreads through workforce and suppliers
Jaguar Land Rover normally builds about 1,000 vehicles daily at its plants in Solihull, Wolverhampton, and Halewood. Since 1 September, employees have stayed home without production work. About 30,000 people are directly employed by the firm, with another 100,000 tied to its supply chain. Some suppliers rely entirely on Jaguar Land Rover, while others serve multiple carmakers. Industry voices are demanding urgent government action to shield suppliers from collapse.
Government explores rescue options
One proposal suggests the government could buy parts from suppliers until production restarts. Some firms, however, doubt this approach would succeed. One supplier argued the government does not understand the complexity of the industry and asked for practical help, not promises. The prime minister said the business secretary is working nonstop with suppliers to build a workable solution.
Industry Minister Chris McDonald welcomed Jaguar Land Rover’s progress. He said restarting operations will help stabilise supply chains and improve cash flow. He added that the government will continue close talks with the company and its partners.
Industry leaders warn of crisis
Unions have called for a furlough-style scheme similar to Covid support. Ministers have rejected this idea, citing high costs. After a private meeting with suppliers, Business and Trade Select Committee chair Liam Byrne warned the chancellor that some firms may collapse within weeks, threatening the supply chain.
Stockpiling car parts is another option under review, but experts warn of huge logistical obstacles. Jaguar Land Rover’s production system relies on precise timing, with parts arriving exactly when needed. Government-backed loans are also being considered, but many suppliers resist taking on more debt during the crisis.
