JLR gears up to restart production after cyber attack

Manufacturing will go ahead first at Jaguar Land Rover’s engine factory in Wolverhampton. But it’s expected to be several weeks before all operations across the UK will be up and running at full capacity, JLR has said.

Restarting some operations will come as great news for JLR’s suppliers, some of which are small businesses who mainly rely on supplying to the carmaker and have faced huge financial pressure since the shutdown.

Business secretary Peter Kyle recently announced a £1.5bn loan for the British carmaker, aimed at protecting jobs in the West Midlands, Merseyside and across the UK.

It’s thought to be the first time the government has stepped in to help a company hit by a cyber attack. The hope is the loan will give suppliers greater certainty while JLR deals with the disruption.

The loan will be backed by the government through the Export Development Guarantee (EDG), a scheme that helps UK businesses trading overseas. JLR will repay the loan over five years, boosting cash reserves so it can pay its suppliers.

Kyle said the loan was designed to protect jobs and support the wider supply chain. “This is a big moment,” he said. “It gives JLR and its suppliers the resources they need to get through this challenge.”

What’s the story so far?

The cyber attack at the end of August forced the company to shut down its IT systems on 1 September. Since then, production has been on hold, disrupting parts orders, and leaving retailers struggling to operate.

Around 30,000 people work directly at JLR’s UK factories, with another 100,000 employed by companies across its supply chain. Some of these suppliers work exclusively for JLR, while others also sell to other carmakers.

In wake of the shutdown, workers have been sent home, suppliers have cut hours, and some staff have been told to apply for Universal Credit. Union Unite warned the supply chain is “on the brink of collapse.”

“Workers in the JLR supply chain must not be made to pay the price for the cyber attack,” said Unite’s general secretary Sharon Graham.

In response, the government is directly involved in helping JLR recover from the cyber attack, UK trade body the Society of Motor Manufacturers and Traders (SMMT) confirmed.

While JLR works to rebuild its computer systems, cyber experts at the government’s National Cyber Security Centre (NCSC) and law enforcement are supporting the effort and looking at how the disruption is affecting suppliers.

“The cyber incident is having a big impact on JLR and the wider car industry,” SMMT and the Department for Business and Trade (CBT) said in a joint statement. “Government experts are in contact with the company to help restore production and to understand the knock-on effects for the supply chain.”

What does the shutdown mean for customers?

The recent cyber attack at JLR, and consequently the temporary suspension of production, may cause delays in new car deliveries. But customers shouldn’t worry about sales or service – dealerships are still operating normally, so you can continue to book appointments and have your car serviced.

On the personal data side, the company is investigating whether any customer information was accessed. JLR will reach out directly to anyone affected, but in the meantime, it’s a good idea to keep an eye on your accounts for anything unusual.

The company is also updating local MPs where its facilities are based about the ongoing situation. Hacking group Scattered Spider has also claimed responsibility for the attack.

But for now, thousands of workers across JLR’s supply chain remain in limbo – waiting for production to restart before the disruption deepens further.

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