UK works to prop up firms hit by Jaguar Land Rover shutdown

Range Rover SUV production in Solihull, UK. (Bloomberg)

The UK is in talks to provide support to automotive suppliers hit by fallout from a cyberattack at Jaguar Land Rover that’s shut down production at the country’s largest carmaker, people familiar with the matter said.

Business Secretary Peter Kyle is working on plans to prevent chaos in a UK automotive supply chain reliant on business from the Range Rover maker. Some vendors have sent staff home, while others are awaiting payments from JLR as the carmaker attempts to clear a backlog of unpaid bills.

Kyle is exploring easing the strain on suppliers by purchasing parts on behalf of JLR, then selling them to the manufacturer when it’s back up and running, according to one of the people, who asked not to be identified discussing the information. JLR is involved in the talks but isn’t asking for any support for itself, one of the people said.

It comes as JLR said Thursday some of its online systems are back up and running, allowing it to process more invoices for suppliers, distribute parts to dealers more quickly and to sell and register vehicles faster. “The foundational work of our recovery program is firmly underway,” a spokesperson said.

JLR is grappling with the fallout from the cyberattack for a fourth week running. Its plants in the UK, Slovakia, Brazil and India have been out of action since the start of the month, with the shutdown’s impact rippling out to the wider auto industry. The company is targeting a restart of some manufacturing operations next Wednesday; getting back to full speed is likely to take much longer.

Small suppliers that count JLR as a key customer are particularly affected. In countries such as Slovakia, suppliers have placed staff on shorter duty with the government covering part of their salary.

The support program being examined by Kyle poses potential challenges, such as storage of the purchased components, which specific parts to order and at what volumes. The union Unite has separately called for staff at suppliers to receive furlough pay, similar to the program set up during the pandemic.

A government spokesperson declined to comment, referring to an ITV News interview with Kyle. He told the broadcaster he was “here to listen, to learn and then be the partner of JLR and the supply chain, and crucially the workers in need in this difficult time.”

Industry minister Chris McDonald said in a post on X the government is working with JLR to “get the supply chain up and running as soon as we possibly can.”

Larger suppliers are also wrestling with the shutdown, including France’s OPmobility SE. The company is “reconfiguring its production at certain sites as a consequence of the shutdown of its production by one of its customers,” a spokesperson said.