UK Government Weighs Emergency Support for JLR Suppliers
The UK government is considering emergency measures to support Jaguar Land Rover’s (JLR) suppliers after a major cyber-attack forced the carmaker to suspend production at its factories.
The attack, which occurred at the end of August and was first reported on September 1, disrupted JLR’s IT systems, bringing operations at its three UK plants in Solihull, Wolverhampton, and Halewood to a standstill. The company has confirmed production will not resume before October 1, with losses estimated at £50 million per week.
Concerns are mounting that smaller suppliers heavily dependent on JLR could face bankruptcy if production delays continue. Ministers are exploring several options to keep these firms afloat, including buying and stockpiling car components produced by suppliers until JLR’s production lines restart. Government-backed loans are also under discussion, though suppliers are reportedly wary of taking on additional debt.
If approved, this would mark the first instance of a UK company receiving direct government intervention due to a cyber-attack.
The shutdown has affected around 30,000 JLR employees and 100,000 workers within the broader supply chain. Unions initially pushed for a Covid-style furlough scheme to protect jobs, but ministers have ruled this out due to cost concerns.
Industry experts warn that without immediate action, multiple supply chain businesses could collapse, posing a serious threat to the UK automotive sector. “Doing nothing risks a domino effect of bankruptcies,” one insider cautioned.
The Business and Trade Select Committee is set to meet later this week to hear testimonies from affected suppliers. Their findings will be shared with ministers to guide the next steps.
JLR, owned by India’s Tata Motors, has also faced disruptions at its factories in Slovakia, China, and India. The company is receiving technical assistance from the National Cyber Security Centre and the National Crime Agency as investigations continue.
A hacker group known as Scattered Lapsus$ Hunters has claimed responsibility for the cyber-attack, which also targeted Marks & Spencer, Co-op, and the British Library in recent months.
During a visit to the West Midlands this week, Industry Minister Chris McDonald stressed the importance of working closely with affected businesses. “It’s really important that we don’t impose solutions on businesses but work with them to find the right approach,” he said.
JLR, in a statement, reassured stakeholders: “Our focus remains on supporting our customers, suppliers, colleagues, and our retailers, who remain open.”
The incident has sparked wider concerns about the rising threat of cyber-attacks on UK industries, with senior government officials warning of the need for stronger national cyber resilience.
