JLR supplier cashflow under pressure as cyberattack disrupts payments; government weighs support options

Jaguar Land Rover’s cyberattack has disrupted payments to suppliers across its UK network, leaving some in the supply chain with as little as seven to 10 days of cash on hand as the automaker works to restore its IT systems. In a meeting of the House of Commons Business and Trade Committee on Thursday, 10 suppliers described cash-flow pressures that threaten operations across the JLR ecosystem. JLR, which operates plants in Solihull, Wolverhampton and Merseyside, employs about 30,000 people directly and supports roughly another 100,000 in its supply chain.

Labour MP for Tamworth and committee member Sarah Edwards said some suppliers had not been paid since the end of August and urged rapid action. "They're very worried, they are concerned," Edwards said. "It's imperative suppliers are paid very very quickly." She said the 10 companies represented a cross-section of first-line direct suppliers spanning the "whole eco-system" of the supply chain and highlighted the vulnerability of smaller suppliers' cashflow. "It's very worrying and that's because we're nearly a month into this—some of those suppliers had not been paid," she said. "We heard from one supplier who had still not received payment from JLR since 29 August, so it's really good to hear that the [JLR] invoicing system is coming back online."

Edwards said the meeting covered a cross-section of first-line direct suppliers, including smaller firms, and that the concerns went beyond a single echelon of the supply chain. She noted that some suppliers had already faced the decision to cut back operations, delay maintenance or even scale back capacity because cash reserves were running dry while JLR’s systems were offline. "We heard from one supplier who had not been paid since 29 August," she repeated, emphasizing the need for speed and clarity as the company works to restore processes and communicate timelines to its partners.

JLR disclosed on Thursday that it had begun a phased restart of its operations, with parts of its IT system back up and running as part of a controlled recovery. The company did not provide a firm timetable for full restoration or for when production would return to normal, but said the restart was ongoing and gradual. The implication for suppliers is that planning remains difficult while the underlying systems are still being stabilized and the production rhythm is being rebuilt.

The discussion also centered on how to retain the workforce and skills within the supplier base and maintain immediate cash flow to keep facilities open. Edwards described the situation as one of balancing short-term liquidity with long-term capability, noting that some firms had already faced hard choices, such as selling equipment and consolidating sites, in order to survive.

"We heard from one smaller supplier who’s already had to sell machinery, sell one of their trucks and go from two buildings down to one. Some people are at home already; they do not know whether they’ll be returning to work and when," Edwards said. She added that JLR needed to be clearer on the timeframe for returning to full production, as the lack of clarity makes it harder for suppliers to plan and exposes them to higher risks of insolvency or curtailment of capabilities.

To address the cash-flow squeeze, some suppliers proposed keeping money circulating within the supply chain and asked what the government could do to support that process. One option being explored is for the government to buy component parts manufactured by suppliers to keep them operating until JLR’s production lines are back online, after which the government would sell those parts to JLR. Edwards acknowledged that the government’s involvement could be helpful but warned about logistical challenges in such a tightly timed, just-in-time operation. "This is a 'just in time' operation, so storing those parts, making sure they’re not damaged, making sure that quality control is intact would be difficult," she said. "One of the thoughts from the suppliers therefore was that you could buy forward, so you’d essentially place the orders knowing you were going to start production but pay now. That’s an option they thought was more likely." She also noted that while the government might step in temporarily, the issue should not become a taxpayer-funded bailout for the long term.

A second image is placed here to accompany the ongoing discussion about the supply chain and industry impact.

Edwards said the government’s role in supporting the supply chain should be temporary and targeted, and that more timely communication and a clearer timeframe for the return to production would help suppliers manage cashflow and staffing levels. She emphasized that the issue is fundamentally about keeping the workforce intact and preserving the capability of the broader ecosystem so that production can resume smoothly when JLR’s systems are fully functional again.

Officials from JLR have stressed that the company is working to stabilize its operations and restore service as quickly as possible, but the company has not committed to a specific timetable for full production resumption. The government has not announced a formal package of support, but the committee is pursuing options that could help sustain suppliers while the automaker’s IT and manufacturing systems are brought back to full capacity. The situation underscores the fragility of modern automotive supply chains to cyber incidents and the delicate timing required to keep thousands of jobs and billions of pounds in economic activity moving in the months ahead.