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The government is exploring avenues to provide financial assistance to the suppliers of Jaguar Land Rover (JLR). Following a cyber attack that led to the suspension of car production at the end of August, JLR is still unable to resume operations at its factories. Concerns are mounting over the fate of some suppliers, particularly smaller companies heavily reliant on JLR’s business, which could face insolvency without support. The government is considering purchasing the component parts from these suppliers to help sustain their operations until JLR’s production lines are back in action.
Proposals for a Covid-style furlough scheme, similar to what unions had advocated for, have been dismissed by ministers due to the anticipated high cost. Instead, alternatives such as government-backed loans and the acquisition of car parts by the government are being explored, despite resistance from suppliers. The logistics of stockpiling components present significant challenges, as JLR’s manufacturing process depends on the precise timing and delivery of parts. Nonetheless, industry experts warn that inaction could lead to the collapse of firms within the supply chain, endangering the employment of tens of thousands of workers.
In response to the cyber attack on JLR, which is estimated to be costing the company £50 million per week in lost production, an investigation is underway. The repercussions of the attack have disrupted the usual production of over 1,000 cars daily across JLR’s factories in Solihull, Wolverhampton, and Halewood. Approximately 30,000 people are directly employed at these plants, with an additional 100,000 working within the company’s supply chain. As government officials express concerns over a surge in cyber attacks targeting UK institutions and businesses, the Business and Trade Select Committee is convening to hear testimonies from affected businesses in JLR’s supply chain.
Notably, a group identified as Scattered Lapsus$ Hunters has claimed responsibility for the cyber attack on JLR, alongside breaches at Marks & Spencer and Co-op. The business secretary and industry minister recently visited the West Midlands to engage with JLR and its supply chain partners, underscoring the government’s commitment to addressing the fallout from the cyber attack. Additional reporting by Pritti Mistry further emphasizes the ongoing efforts to support affected businesses and mitigate the impact of the disruption caused by the cyber attack
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