(qlmbusinessnews.com . Sun 21st Sep, 2025) London, UK —
Global Supply Chain Crisis Looms as Jaguar Land Rover Shuts Down UK Factories
The recent fortnight has been fraught with challenges for Jaguar Land Rover (JLR), as the automotive giant grapples with an ongoing crisis that shows no immediate resolution in sight.
A devastating cyber-attack unearthed on the 1st of September prompted the firm to shut down its IT systems, which in turn, led to the halting of its global production lines.
The company's UK-based facilities in Solihull, Halewood, and Wolverhampton are slated to remain non-operational until at least the upcoming Wednesday, leaving JLR to evaluate the extensive damage inflicted.
So far, the financial toll on JLR is estimated to be upwards of £50m due to the production standstill. However, industry insiders express greater concern over the ripple effects on JLR's extensive network of suppliers, which predominantly includes small to medium-sized businesses.
Amidst soaring apprehensions over potential mass job losses, there have been calls for the government to implement a furlough scheme as a protective measure.
David Bailey, a professor of business economics at Birmingham Business School, voiced to the Reporters, “The supply chain for Jaguar Land Rover could involve up to a quarter of a million people. Should this closure persist, we could very well witness companies collapsing and substantial job eradication.”
Under usual circumstances, JLR would boast the production of more than 1,000 vehicles daily, with a significant portion being manufactured within its UK sites in Solihull and Halewood, alongside engine assembly at its Wolverhampton facility. Despite also operating larger factories in China and Slovakia, as well as a smaller site in India, the cyber-attack has led JLR to proactively shut down its IT networks to safeguard them from further harm, critically impacting its manufacturing and supply chain operations.
Although JLR initially appeared optimistic about swiftly resolving the issue, the complexity of rebooting its computer systems has become evident nearly two weeks later. The company has also acknowledged the potential compromise and theft of data and has engaged with the National Cyber Security Centre to scrutinise the breach.
Financial experts estimate JLR's daily losses to range between £5m and £10m, culminating in losses of £50m to £100m. Despite this setback, the firm's pre-tax profit of £2.5bn for the year ending March signals its capacity to endure a weeks-long crisis, albeit not without consequences.
The impending threat of bankruptcy looms over numerous suppliers in JLR's dependency chain, particularly impacting those smaller in scale lacking the resilience to withstand prolonged business interruptions.
Former Nissan executive and ex-Aston Martin boss, Andy Palmer, predicts stark cost-cutting measures and layoffs within these companies. One unnamed supplier to JLR has already confirmed the redundancy of 40 employees, nearly half its workforce.
With the return to normal operations looking bleak, some firms have opted to have their staff “bank” their non-working hours against future holidays or overtime, an indication of the uncertain times ahead.
The automotive sector's vulnerability to disruptions often leads to temporary staff facing the initial brunt of cutbacks, though permanent staff, due to their indispensable skills, are usually safeguarded until financial strains render their roles untenable.
Labour MP Liam Byrne accentuates the need for governmental intervention to preclude a temporary predicament from causing lasting damage to a pivotal sector of the UK's advanced manufacturing industry.
Echoing the urgency for governmental support, Unite's general secretary, Sharon Graham, has called for the re-introduction of a furlough scheme to shield jobs and vital skills within the JLR supply chain amid this tumultuous period.
Acknowledging the severity of the incident, Business and Trade Minister Chris Bryant outlined ongoing discussions and constant coordination with JLR and cybersecurity specialists aimed at resolving the crisis, underscoring the collective anxiety and the concerted efforts towards recovery.
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