Navigator84
Carmaker Resumes Limited Operations, But Factories Remain Closed
Jaguar Land Rover (JLR) has announced it has begun a “phased restart” of its IT operations, with parts of its systems now back online. The company confirmed it is clearing a backlog of payments to suppliers after increasing its processing capacity for invoicing.
JLR’s production lines have been suspended since a major cyber-attack in August forced the carmaker to shut down its IT networks. Its UK factories will remain closed until at least next month, leaving uncertainty for workers and suppliers.
Government Faces Pressure to Deliver Supplier Support
The crisis has sparked fears that some smaller suppliers could collapse before operations resume. Prime Minister Sir Keir Starmer acknowledged the urgency of the situation, but admitted that no support plan has yet 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,” Starmer told the BBC.
While ministers are working on a package, options remain under debate. Ideas being considered include government purchases of component parts to keep suppliers afloat, though businesses have expressed doubts over the feasibility of such a plan.
One supplier told the BBC:
“The government simply don’t understand the complexity of what they’re dealing with. We don’t need promises, we need help.”
Business Secretary Peter Kyle is said to be working “24/7 with those businesses” to find a viable solution.
Recovery Programme “Firmly Under Way”
In a statement on Thursday, JLR said its recovery efforts were progressing:
- Its global parts logistics centre is “returning to full operations,” enabling spare parts for customer vehicles to be supplied.
- Its financial systems for wholesale vehicle sales are now back online, allowing cars to be sold and registered more efficiently and improving company cash flow.
JLR acknowledged the crisis had created a “difficult time for all connected with JLR”, with no new cars being built and workers sent home.
Scale of the Shutdown
JLR, owned by India’s Tata Motors, usually produces about 1,000 vehicles per day at its factories in Solihull and Wolverhampton (West Midlands) and Halewood (Merseyside).
- Around 30,000 people are directly employed by the company.
- An estimated 100,000 people work across its supply chain.
Many supplier firms depend exclusively on JLR contracts, leaving them especially vulnerable during the shutdown. Workers have been told to stay home since 1 September, with no confirmed return date.
Supplier Survival in the Balance
Unions have urged the government to consider a Covid-style furlough scheme, though ministers have ruled this out due to cost concerns.
Other support measures under discussion include:
- Government purchase and stockpiling of parts – but this presents serious logistical challenges given JLR’s “just-in-time” production model.
- Government-backed loans for suppliers – though these are reportedly unpopular with businesses already struggling with debt.
During a private meeting with JLR suppliers on Thursday, Liam Byrne MP, chair of the Business and Trade Select Committee, warned Chancellor Rachel Reeves that some companies had only “weeks left” before severe financial disruption hit the UK car supply chain.
Industry and Political Response
Industry Minister Chris McDonald described JLR’s IT restart as “welcome progress” and stressed the government would continue its dialogue with both the carmaker and its suppliers.
Meanwhile, unions and suppliers have reiterated that immediate financial intervention is critical to prevent insolvencies across the supply chain before production resumes.
About the Author
