Jaguar Land Rover (JLR) has confirmed that its factories will stay closed until at least October 1, as the company continues to deal with the fallout from last month’s cyber attack.
Since the attack at the end of August, JLR has been unable to produce vehicles, with its IT systems still offline. The pause has now dragged on for weeks, putting huge strain not just on the company but also on its suppliers — some of whom warn they may not survive without urgent support.
Business Secretary Peter Kyle and Industry Minister Chris McDonald will visit JLR on Tuesday to meet with the carmaker and its supply chain partners. It’s their first visit since the crisis began.
“Our focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open,” JLR said in a statement. “We recognise this is a difficult time for everyone connected with JLR, and we thank everyone for their patience.”
But the scale of the disruption is massive. Experts estimate it has already cost JLR around £120m in profit and £1.7bn in lost revenue. Some sources have suggested the problems could drag on into November.
McDonald said the government’s priorities are twofold: getting JLR back online as quickly as possible, and protecting the long-term health of its supply chain.
“We know how tough this is for suppliers and their staff, many of whom are already taking a financial hit through no fault of their own,” he said. “We will do everything we can to reassure them the government is on their side.”
Suppliers themselves are being cautious in public — worried about spreading panic or being seen as blaming JLR — but behind the scenes, some are struggling to pay workers.
“It’s not a blame game, but it is a cry for help,” said Johnathan Dudley of consultancy firm Crowe UK. “There are businesses now seeing people not being paid.”
JLR has so far shouldered responsibility for supporting its supply chain without direct government intervention. However, Unite, one of the UK’s largest trade unions, is calling for more formal help — such as a furlough scheme for supplier staff. The union says some workers have already been laid off on reduced or zero pay, with others told to apply for Universal Credit. Photo by Anthony Parkes, Wikimedia commons.