Ministers are weighing options to provide support for Jaguar Land Rover suppliers after the carmaker had to halt production due to a cyber-attack.
The incident, which struck at the end of August, forced JLR to shut down its IT networks, leaving factories idle until at least next month. Concerns are rising that some suppliers, particularly smaller firms reliant solely on JLR contracts, could face collapse without assistance.
One potential measure being explored is for the government to purchase the component parts these suppliers produce. However, suppliers speaking to the BBC have expressed scepticism about the effectiveness of such a scheme. The intention would be to maintain the supply chain until production resumes.
“To say we’re disappointed is an understatement,” said one supplier, who wished to remain anonymous. They added that the government “simply don’t understand the complexity of what they’re dealing with”, and that “we don’t need promises, we need help”.
During a ministerial visit on Thursday, Chancellor Rachel Reeves was asked whether the government planned to step in to support firms in JLR’s supply chain. She stated that the priority was getting the business operational again and that the government would do “everything we can to stand by the company and the wider supply chain”.
JLR, owned by Tata Motors of India, normally produces around 1,000 vehicles daily across its Solihull and Wolverhampton plants in the West Midlands, and Halewood in Merseyside. Workers were sent home after the hack, first reported on 1 September, with no firm return date confirmed.
Around 30,000 people are employed directly at JLR plants, with roughly 100,000 more working for associated suppliers. Some firms supply parts exclusively to JLR, while others distribute to multiple manufacturers. The disruption also threatens ancillary businesses, including local cafés and transport companies.
JLR confirmed this week that its factories will remain closed until at least 1 October, though earlier reports suggested production could be halted until November. If government support is offered, it would mark the first instance of aid provided to a company due to a cyber-attack.
Unions have called for a Covid-style furlough scheme, but ministers have reportedly rejected this due to the likely cost. Another option under discussion is the stockpiling of parts by the government, though JLR’s just-in-time manufacturing process makes this highly complex. Government-backed loans to suppliers are also being considered, though suppliers are reportedly wary of this approach.
Speaking on BBC Radio 4’s Today programme, former Conservative West Midlands mayor Andy Street said companies in JLR’s supply chain had been “very successful” and expressed support for government-backed loans.
Investigations into the attack are ongoing, with estimated production losses of at least £50m per week. Reports from The Insurer suggest JLR had not finalised insurance cover against a cyber-attack prior to the incident. The BBC has reached out to JLR for comment.
While governments have previously aided companies affected by high-profile hacks, financial support has rarely been considered, with costs typically borne by insurers or the companies themselves. In the US, authorities have carried out “hack backs,” recovering millions of dollars from cybercriminals for victims.
JLR’s facilities in Slovakia, China, and a smaller site in India have also been affected. The Business and Trade Select Committee is set to meet on Thursday to hear evidence from JLR suppliers, which will be shared with government officials.
Senior ministers are concerned about the rising pattern of cyber-attacks on UK organisations, including the British Library, Marks & Spencer, and the Co-op. A group calling itself Scattered Lapsus$ Hunters has claimed responsibility for attacks on JLR, Marks & Spencer, and the Co-op. Co-op reported losses of at least £206m due to a previous cyber-attack.
JLR continues to receive support from the National Cyber Security Centre and the National Crime Agency. The Department for Business and Trade confirmed ministers have discussed “the impacts of the cyber-incident and how JLR can work towards restarting production”. In its latest statement, JLR said: “Our focus remains on supporting our customers, suppliers, colleagues, and our retailers, who remain open.”
The unfolding situation underscores the urgent need for practical support for Jaguar Land Rover suppliers to protect both the company and the wider automotive supply chain.
