JLR supply chain at risk as cyber-attack halts production into October
UK ministers face pressure to backstop suppliers as Jaguar Land Rover extends factory shutdown and warns of wider economic impact.
Britain's Jaguar Land Rover said its factories will remain closed until at least Oct. 1 after a cyber-attack disrupted its computer systems at the end of August, prolonging a production halt into October. The company said the disruption has cost about £2 billion in lost sales and warned the delay could ripple through its global supply chain.
Business Secretary Peter Kyle traveled to the West Midlands for talks with JLR and suppliers as lawmakers urged government action. Labour MP Antonia Bance warned that the freeze threatens the 'disintegration' of the supply chain, noting that while 34,000 people work for JLR, more than 200,000 are employed by its suppliers. Production lines have been closed across the West Midlands and beyond, and many suppliers are reporting cash-flow difficulties as orders dry up.
The government has faced renewed calls to intervene as the disruption deepens. Trade union Unite urged the government to establish a furlough-style scheme to subsidize wages across the supply chain to protect jobs, but officials have refused to sanction such support.
Saqib Bhatti, a Conservative MP in the West Midlands, said the failure to act could have significant economic consequences for the region. Labour's Liam Byrne, chairman of the business and trade select committee, called JLR not just a carmaker but “the heart of our advanced manufacturing,” the anchor of a vast supply chain, and pressed ministers to monitor the immediate and broader fallout and be ready to act.
Kyle added: “I know this is a deeply worrying time for all affected. Getting JLR back on-line as soon as possible is my top priority. This Government is on the side of our world-leading automotive sector. We are doing everything we can to minimise the impact of this incident.”
JLR said: “Our focus remains on supporting customers, suppliers, colleagues, and our retailers who remain open. We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.”