Jaguar Land Rover ramps up production again following cyberattack, offering fast-track payments to struggling suppliers and plotting a full-scale recovery.
Jaguar Land Rover (JLR) is back in motion. The UK’s largest car manufacturer has announced that it will resume manufacturing operations at key sites from Wednesday, following a major cyberattack that temporarily halted its production lines.
JLR Resumes Production After Cyberattack
The restart includes a phased return of workers at its Wolverhampton engine facility and battery assembly centre in Coleshill, Birmingham. Other major stamping and production sites, Castle Bromwich, Halewood in Merseyside, and Solihull, are also set to power up again.
“This week marks an important moment for JLR and all our stakeholders as we now restart our manufacturing operations following the cyber incident,” said Adrian Mardell, Chief Executive of JLR.
Key UK Operations Back in Action
As part of this cautious restart:
- The Solihull plant will see its body shop, paint shop, and logistics centre resume activity.
- These divisions are essential for supplying parts to JLR’s global manufacturing network.
- Production at Nitra, Slovakia, and key Range Rover lines in Solihull are expected to follow in the coming days.
JLR’s controlled revival is expected to gather pace throughout the week, with the firm maintaining a close watch on how operations unfold.
Rescue Plan for Suppliers Unveiled
As supply chains trembled during the shutdown, the car giant has launched a fresh financial aid scheme. It will pay qualifying suppliers up to 120 days earlier than usual a critical lifeline for firms left cash-strapped by the pause.
“Our suppliers are central to our success, and today we are launching a new financing arrangement that will enable us to pay our suppliers early, using the strength of our balance sheet to support their cash flows,” Mardell explained.
Notably:
- Initial payments will go to priority suppliers key to restarting production.
- Some non-production suppliers impacted by the breach will also be included.
- JLR will cover financing costs for those using the scheme during the recovery period.
This approach aims to prevent collapses among the many small and medium-sized businesses that form the backbone of JLR’s vast UK supply network, which supports over 120,000 jobs.
Financial Fallout: A Pricey Pause
The forced production halt hasn’t come cheap. Industry insiders estimate the downtime could dent JLR’s earnings by around £120 million, with the firm typically producing 1,000 vehicles per day.
Suppliers, already battling tight margins, have borne the brunt. Some were reportedly on the brink, prompting the UK Government to step in with a £1.5 billion loan guarantee, aiming to restore confidence in payments and stabilise operations.
The cyberattack on Jaguar Land Rover halted thousands of vehicles in production, but a rapid comeback is now underway with new financial safeguards in place to keep the UK automotive supply chain from unravelling.
JLR has promised further updates on its “controlled restart” strategy, with a focus on its Halewood plant in Merseyside and other affected facilities.
The company is also preparing to publish its second-quarter results, giving analysts a clearer view of the cyberattack’s impact and the strength of the company’s rebound.
Mardell concluded: “We know there is much more to do, but our recovery is firmly underway.”
As JLR resets its gears and suppliers breathe a cautious sigh of relief, all eyes are now on how swiftly and smoothly the British motoring giant can reclaim its stride.
