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Jaguar Land Rover (JLR) has announced the commencement of a “phased restart” of its operations, with certain parts of its IT system now operational. The company is actively working to clear a backlog of payments to suppliers and has increased its processing capacity for invoicing. Following a cyber-attack in August that forced the shutdown of its IT networks, the carmaker’s production lines have been on hold, with factories anticipated to remain closed until the coming month at the earliest. As concerns mount regarding the potential bankruptcy of suppliers, mainly small businesses, due to the extended operational shutdown, the government is reportedly crafting a support package.
Sir Keir Starmer has acknowledged the urgency of the situation faced by JLR’s suppliers but mentioned that a finalized support plan is yet to be determined. With various proposals on the table regarding how the government can aid JLR’s suppliers until car production resumes, the company itself has stated that its recovery program is well underway. The global parts logistics center that services customers’ vehicles is returning to full operation, allowing for faster vehicle sales and registrations to facilitate cash flow.
The manufacturer, a subsidiary of India’s Tata Motors, typically produces about 1,000 cars daily across its three factories. Since September 1st, workers have been instructed to remain at home without a confirmed return date. Directly employing approximately 30,000 individuals, JLR’s plants support about 100,000 workers in the supply chain, with some firms exclusively supplying parts to JLR while others cater to multiple car manufacturers.
With the cyber-attack’s ripple effect threatening suppliers’ businesses, suggestions have surfaced, such as the government purchasing component parts to sustain these companies until production resumes. Nevertheless, suppliers remain doubtful about the viability of such proposals, urging concrete support measures. Despite calls for a furlough scheme akin to the one implemented during the pandemic, the government has supposedly dismissed the idea due to cost concerns. While options like government-backed loans are being considered, logistical challenges may impede the swift implementation of supportive measures
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