Government Weighs Financial Support for Jaguar Land Rover Suppliers Amid Cyber-Attack Fallout

The UK government is considering emergency measures to support suppliers to Jaguar Land Rover (JLR) after the carmaker was forced to halt production following a major cyber-attack.

JLR suspended operations at its factories in Solihull, Wolverhampton, and Halewood after shutting down its IT systems at the end of August. The disruption—costing the company an estimated £50m a week—is expected to continue until at least next month.

The suspension has raised fears for smaller suppliers that rely heavily, or even exclusively, on JLR’s business. Without intervention, some could face collapse, threatening jobs across the wider supply chain, which employs tens of thousands of workers.

Among the options under discussion:

• Government purchasing and stockpiling car parts from suppliers until production restarts, to keep firms afloat.
• Government-backed loans, though industry sources say this option is unpopular with suppliers.
• A Covid-style furlough scheme was suggested by unions but has been ruled out by ministers due to cost.

JLR, which typically produces more than 1,000 cars a day, has been unable to give workers a firm return date since the cyber-attack first came to light on 1 September.

Officials acknowledge that the company’s “just-in-time” manufacturing process makes any stockpiling effort difficult, but industry experts warn that inaction could trigger supplier bankruptcies and destabilise the UK’s automotive sector.

An investigation into the cyber-attack is ongoing.