Jaguar Land Rover (JLR) is to extend the suspension of production at its factories until at least October 1st as a result of a crippling cyber attack that has disabled its IT networks since the end of August.
The decision to prolong the shutdown comes as fears intensify over the financial stability of the company's extensive supply chain, with politicians and union leaders urgently calling for government intervention.
JLR stated that the extension was necessary to provide "clarity" to its workforce and suppliers as it continues a "forensic investigation" into the incident. The company's IT systems, which manage everything from manufacturing and logistics to ordering parts and even registering new vehicles, were effectively shut down by the cyber attack.
This widespread IT outage is the main issue preventing a restart, as the company needs to ensure a "safe and secure" resumption of operations. Sources have hinted that the disruption could last well into November, a prospect that would be devastating for the company and its partners.
The impact on the supply chain is a central concern. JLR's "just-in-time" production model means that hundreds of companies, many of them small to medium-sized enterprises in the West Midlands and Merseyside, have had to halt their own production.
The stoppage is costing JLR an estimated £50 million per week, and without orders, suppliers are facing a financial crisis. Johnathan Dudley of Crowe UK described the situation as a "cry for help," noting that some businesses are now unable to pay their staff.
In response, government officials, including Business Secretary Peter Kyle and Industry Minister Chris McDonald, are visiting JLR to meet with company leaders and affected suppliers.
Their stated priorities are to help JLR get back online and protect the long-term health of the supply chain. Unite, one of the country's largest trade unions, has called for a "furlough scheme" for affected supplier staff, citing reports that some workers have been laid off with "reduced or zero pay" and advised to apply for Universal Credit.
While JLR, owned by the Indian conglomerate Tata, is currently taking the lead on supporting its supply chain, the scale of the crisis has prompted calls for state intervention. MPs have suggested loans similar to those offered during the Covid-19 pandemic to prevent the collapse of businesses and the loss of jobs.
The JLR shutdown, which directly impacts 30,000 employees and a further 100,000 in the supply chain, is now being seen as a "wake-up call" for the cyber resilience of UK industry.