Jaguar Land Rover has started a phased restart of operations following a major cyber-attack. Some IT systems are now functioning again, and the company is clearing overdue supplier payments with expanded invoicing capacity.
Cyber-attack halts production
The August cyber-attack forced Jaguar Land Rover to shut down IT networks and suspend car production. Factories are expected to remain closed until at least next month. The prime minister said the government is working nonstop on a support package for suppliers. Smaller firms face growing risk of collapse if disruption continues. Opposition leader Sir Keir Starmer called the situation urgent but admitted no support plan is finalised. He said suppliers are suffering through no fault of their own.
Recovery programme moves forward
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 is also restored, enabling faster 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 vehicles are being built, and staff remain at home without a confirmed return date.
Workforce and suppliers under pressure
Jaguar Land Rover normally 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 employs around 30,000 people directly, with another 100,000 connected to its supply chain. Some suppliers rely entirely on Jaguar Land Rover, while others supply multiple manufacturers. Calls for urgent government support are growing as suppliers face financial strain.
Government explores solutions
One option is for the government to purchase parts from suppliers until production resumes. Many suppliers doubt such a plan would succeed. One firm said ministers do not understand the complexity of the industry and called for practical help rather than promises. The prime minister said the business secretary is working closely with suppliers to create a workable plan.
Industry Minister Chris McDonald welcomed Jaguar Land Rover’s progress. He said restarting operations will strengthen cash flow across supply chains. He added that the government will maintain close dialogue with the company and its partners.
Suppliers warn of collapse
Unions have called for a furlough-style scheme similar to Covid support. Ministers rejected this option, citing 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 parts is under discussion, but experts warn of serious logistical hurdles. Jaguar Land Rover’s production relies on precise timing, with each part arriving at the right moment. Government-backed loans are also being considered, though many suppliers are reluctant to take on additional debt during the crisis.
