(qlmbusinessnews.com . Fri 26th Sep, 2025) London, UK —
UK Government Explores Support for Jaguar Land Rover Suppliers Amid Production Crisis
Jaguar Land Rover (JLR) has initiated a “phased reactivation” of its business operations as its IT systems commence recovery. The automotive giant is addressing the backlog of payments owed to suppliers, having enhanced its invoice processing capabilities.
The attack on its cyber-infrastructure in August resulted in a production halt, compelling the company to deactivate its IT networks. The shutdown of its factories is expected to continue until next month at the earliest.
Amidst the crisis, the Prime Minister has assured that efforts are underway around the clock to formulate a support strategy for the suppliers, particularly smaller enterprises at risk of insolvency due to the extended halt in JLR's operations.
Labour leader Sir Keir Starmer described the predicament of the suppliers as “urgent” and acknowledged the absence of a finalized support plan. He expressed his acute awareness of the challenges these companies face, emphasising their innocence in the situation during a discussion with the Reporters.
Proposals on how the government might assist JLR's suppliers until car manufacturing resumes are under review.
JLR announced this Thursday that its recovery efforts are making substantial progress with its global parts logistics centre now operating at full capacity, ensuring vehicle serviceability with required spare parts. Moreover, the company's vehicle sales system is operational again, enabling quicker transactions and cash flow enhancements.
Acknowledging the adversity stemming from the pause in car production and the consequent furlough of staff, JLR has underscored the hard times for everyone involved with the company. Owned by India's Tata Motors, JLR typically manufactures around 1,000 vehicles daily across its facilities in Solihull and Wolverhampton in the West Midlands, and Halewood in Merseyside.
Since September 1, employees have been directed to stay home, pending a definitive date for resumption of work.
Approximately 30,000 individuals are directly employed at JLR's plants, with around 100,000 more working within the supply chain, some of whom exclusively provide components to JLR.
The cyber-attack's ripple effects have prompted calls for support to the endangered supplier businesses.
A potential government intervention discussed involves purchasing parts from these suppliers to help sustain them until JLR's production capabilities are restored. However, suppliers remain sceptical about the efficacy of such a plan, with one criticising the government's grasp on the situation's complexity and urging for immediate tangible support rather than promises.
The Prime Minister mentioned that Business Secretary Peter Kyle is diligently collaborating with affected businesses to find viable solutions and support during this critical time. Industry Minister Chris McDonald welcomed the restart of production activities as pivotal to JLR's recovery and beneficial to the cash flow within its supply chain, pledging ongoing government dialogue with the troubled carmaker.
Whilst unions have suggested a furlough scheme akin to that during COVID-19, officials have reportedly dismissed the idea due to cost concerns.
Following a confidential meeting with JLR's suppliers, Liam Byrne MP, chair of the Business and Trade Select Committee, warned Chancellor Rachel Reeves of the imminent financial danger threatening parts of the automotive supply chain.
The government is considering purchasing and stockpiling car parts, a formidable logistical challenge given JLR's manufacturing demands, alongside the less-favoured option of government-backed loans for suppliers.
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