Government Considers Intervention to Ensure JLR Suppliers Support Amid Cyber Attack
UK ministers are exploring ways to provide financial and operational assistance to Jaguar Land Rover’s supply chain after the carmaker was forced to halt production due to a cyber-attack at the end of August. The attack compromised JLR’s IT networks, resulting in factory closures that are expected to last until at least October, with some reports suggesting potential disruption into November.
Concerns are growing that smaller suppliers, heavily reliant on JLR’s contracts, could face bankruptcy without immediate intervention. To mitigate this risk, one option under consideration is for the government to purchase and stockpile the components these suppliers manufacture. This measure aims to maintain business continuity in the supply chain until JLR production lines resume full operations.
JLR typically produces over 1,000 vehicles daily across its three UK plants in Solihull, Wolverhampton, and Halewood. The shutdown has already cost the company an estimated £50 million per week in lost output. Industry experts warn that without government involvement, tens of thousands of workers in the supply chain could face serious financial consequences.
While unions have proposed a Covid-style furlough scheme, ministers have reportedly dismissed this due to high costs. Another alternative being reviewed is offering government-backed loans to suppliers, though this is reportedly unpopular with the businesses themselves. Logistical challenges make component stockpiling complex, as JLR’s manufacturing relies on the precise delivery of parts to the right place at the right time.
Government Considers Intervention to Ensure JLR Suppliers Support
JLR’s international operations have also been affected, including its factories in Slovakia, China, and India. Owned by Tata Motors, the company employs around 30,000 people in the UK, with another 100,000 working within its supply chain. This underscores the importance of any measures taken to ensure the survival and continuity of suppliers.
The Business and Trade Select Committee is scheduled to meet this week to hear testimonies from affected supply chain businesses. Their findings will guide the government in shaping a coordinated response to maintain JLR suppliers support.
The cyber-attack, attributed to a group calling itself Scattered Lapsus$ Hunters, has heightened concerns about the vulnerability of UK institutions and companies to digital threats. JLR has been receiving support from the National Cyber Security Centre and the National Crime Agency to investigate the breach and prevent further disruption.
Industry Minister Chris McDonald emphasized the importance of working collaboratively with businesses, saying that any intervention should support companies rather than impose solutions. The Department for Business and Trade is closely monitoring the situation and coordinating efforts to restart production while safeguarding the suppliers who form the backbone of JLR’s operations.
In its latest statement, JLR confirmed that it remains focused on supporting its employees, suppliers, customers, and retail partners, reinforcing the urgency of measures designed to protect the broader supply chain. Ensuring JLR suppliers support remains a critical priority for the UK automotive sector.
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