Jaguar Land Rover (JLR) has announced a “phased restart” of its IT systems following a crippling cyber attack in August that forced the carmaker to shut down production.
While some back-end operations are returning, its UK factories remain closed until at least next month. The company confirmed on Thursday that it has cleared some payment backlogs to suppliers after restoring capacity for invoicing.
Its global parts logistics centre, which distributes spares for servicing customer vehicles, is also back to full operations. JLR said its wholesale financial system had been brought online, allowing it to sell and register vehicles once again, delivering crucial cash flow.
Despite this progress, the situation remains dire for thousands of suppliers across the UK. Many have reported severe financial stress, with some warning they have only “weeks left” before collapse.
JLR typically produces around 1,000 cars a day across its plants in Solihull, Wolverhampton, and Halewood. Since 1 September, around 30,000 employees have been sent home, while about 100,000 workers in the supply chain remain affected.
Prime Minister Sir Keir Starmer acknowledged the scale of the crisis, calling it “urgent” but admitted no support package has been finalised.
“I am acutely aware of the urgency of the situation and the difficulties that many of these companies are inevitably finding themselves, through no fault of course of their own,” he told the BBC.
One idea under discussion is for the government to purchase and stockpile component parts directly from suppliers to keep them afloat until JLR resumes production.
However, suppliers expressed scepticism about this approach, citing logistical complexities in JLR’s tightly synchronised production model. “We don’t need promises, we need help,” one supplier said.
Another proposal involves government-backed loans, though this has proved unpopular with firms already burdened by debt. Unions have suggested a Covid-style furlough scheme, but ministers have ruled it out due to cost concerns.
Industry Minister Chris McDonald said the IT restart was “welcome progress towards JLR’s recovery” and signalled improved cash flow across the supply chain.
Meanwhile, Liam Byrne MP, chair of the Business and Trade Select Committee, has written to Chancellor Rachel Reeves warning that suppliers face “serious disruption” without swift intervention.
JLR, owned by India’s Tata Motors, stressed that it recognised the “difficult time” faced by all connected with the company. With no cars being built, workers at its three plants are left waiting for clarity on when production will resume.
For now, the world’s attention is on how quickly the carmaker can fully restore operations — and whether government intervention can prevent an automotive supply chain collapse.
