Revving Up Recovery: JLR's Phased Return After Cyber Attack

Jaguar Land Rover (JLR) has begun a ”phased restart” of its operations following a cyber-attack in August that forced the shutdown of its IT networks and production lines. The company is now focused on clearing a backlog of payments and has increased invoicing capacity to assist its suppliers, who are facing dire financial challenges due to the continued factory closures expected to last until next month at the earliest.

In response to the crisis, Prime Minister Rishi Sunak claimed the government was working tirelessly on a comprehensive support package for suppliers, especially small businesses at risk of bankruptcy. Sir Keir Starmer, Leader of the Opposition, acknowledged the urgency of the situation but noted that a finalized support plan is still pending.

As part of its recovery, JLR has successfully brought back parts of its global parts logistics centre and the financial system that processes vehicle wholesales, thereby improving cash flow and operational efficiency. The firm typically produces around 1,000 cars a day, directly employing approximately 30,000 people and relying on an extensive supply chain of about 100,000 workers. With no cars being built since September 1, employees have been sent home, with no clear date for their return.

Calls have intensified for government intervention to protect suppliers, including the possibility of purchasing components directly to keep them afloat. However, many suppliers are skeptical of the government’s understanding of the complexities involved. Some have expressed a need for immediate assistance, stating, “We don’t need promises, we need help.” Critics point out that various proposed solutions, such as government-backed loans, may not gain traction with suppliers.

As discussions continue, industry leaders emphasize the need for swift action, with some firms reportedly having only weeks left before facing severe disruptions. JLR and its suppliers remain at a critical juncture, with the recovery from the cyber-attack impacting the broader car supply chain.