Jaguar Land Rover resumes after cyberattack as suppliers warn of imminent collapse

Jaguar Land Rover has resumed production at some plants after a cyberattack last month forced Britain’s largest car-maker to pause manufacturing and threatened to cost billions. In the latest phase of its recovery, JLR said parts of its IT systems were back online and it could begin clearing a backlog of payments to suppliers.

Suppliers told MPs they are a week from collapse unless urgent support is provided by the government and the company. Liam Byrne, head of the Business and Trade Committee, said in a letter to Chancellor Rachel Reeves that small firms may have at best a week of cash flow left, while larger suppliers could face serious strain within a fortnight. He said most suppliers had already laid off staff and cut agency workers.

Byrne urged immediate action, calling for emergency measures to provide cash through schemes co-financed by JLR and the government, and saying any relief funds should come from Tata, JLR’s Indian owner, which he said bore responsibility for the cyber security failure.

Officials were reported to be weighing steps to keep suppliers in the supply chain afloat, while the Prime Minister declined to say whether the government could buy parts typically used by JLR from suppliers to keep the chain trading. In an interview with ITV, Sir Keir Starmer said he was “really concerned” about the car-maker and about the other businesses that feed into JLR.

On Thursday, JLR said parts of its IT systems were back online and that its teams are working with cybersecurity specialists, the UK Government’s National Cyber Security Centre and law enforcement to clear the backlog. A spokesman said: “The foundational work of our recovery programme is firmly under way. These are important initial steps as our dedicated teams work around the clock alongside cybersecurity specialists, the UK Government’s National Cyber Security Centre and law enforcement.”

The disruption underscores the vulnerability of the automotive supply chain, as production remains partially paused and cash-flow pressures threaten smaller suppliers. It was reported this week that JLR did not have insurance in place for such an event, according to people familiar with the matter. The stoppage is expected to extend into next month, and industry observers warn that a protracted crunch could force some suppliers to exit the market or scale back operations, with ripple effects across the sector.

Officials have signaled they are prepared to act if the crisis deepens, but the timeline for any government-backed rescue or guarantees remains uncertain as the company and its Tata ownership navigate the recovery and work to stabilize a dispersed global supply chain.