Jaguar Land Rover has begun a phased recovery following a damaging cyber-attack. Some IT systems are back online, and the company is processing overdue supplier payments after expanding its invoicing capacity.
Factories remain closed after attack
The August cyber-attack forced Jaguar Land Rover to shut down IT networks and halt production. Its plants will stay closed until at least next month. The prime minister said the government is working around the clock on a rescue package for suppliers. Fears are rising that small businesses could collapse during the extended shutdown. Opposition leader Sir Keir Starmer described the situation as urgent but admitted no finalised support plan exists. He stressed that suppliers are suffering through no fault of their own.
Recovery plan gathers pace
The company said its recovery programme is firmly under way. Jaguar Land Rover confirmed its global logistics centre, which supplies spare parts, has returned to full operation. It also restored its financial system for wholesale sales, allowing faster vehicle sales and registrations that secure vital cash flow. The carmaker admitted this period is difficult for everyone linked to the business. With no new cars built, staff remain at home without a clear return date.
Jobs and suppliers under pressure
Jaguar Land Rover usually produces about 1,000 cars each day at its factories in Solihull, Wolverhampton, and Halewood. Since 1 September, workers have been told to stay home. The company directly employs 30,000 people, with another 100,000 in its supply chain. Some firms rely entirely on Jaguar Land Rover, while others supply multiple manufacturers. Calls are mounting to provide urgent support for suppliers at risk from the disruption.
Government considers rescue options
Officials are exploring a plan for the government to buy parts from suppliers until production restarts. But some suppliers doubt the scheme would succeed. One supplier said officials fail to understand the industry’s complexity and demanded direct help instead of promises. The prime minister said the business secretary is working non-stop with companies to find a practical solution.
Industry Minister Chris McDonald welcomed progress on restarting operations. He said the recovery helps stabilise cash flow across supply chains. He confirmed the government will maintain dialogue with Jaguar Land Rover and its partners.
Urgent warnings from industry
Unions have urged ministers to adopt a furlough-style scheme like the Covid plan, but sources said the cost makes it impossible. After a private meeting with suppliers, Business and Trade Select Committee chair Liam Byrne warned the chancellor that some firms have only weeks before collapse threatens the supply chain.
Stockpiling parts remains an option, though it would create severe logistical challenges. Jaguar Land Rover’s production system depends on precise timing, with every part arriving exactly when needed. Government-backed loans are also being discussed, but many suppliers resist taking on more debt in the current crisis.
