Jaguar Land Rover (JLR) has announced that production at select manufacturing sites will restart on Wednesday following a significant cyber-attack that halted operations since early September. The phased return of staff will begin at locations in the West Midlands and Merseyside, specifically starting with the Wolverhampton engine plant and the battery assembly center in Hams Hall. Employees involved in preparing pressed metal bodywork at the Castle Bromwich, Halewood, and Solihull sites will also be reinstated, along with staff from the Solihull car plant’s body shop and paint shop. A resumption of vehicle manufacturing in Nitra, Slovakia, is expected to follow, and the production lines for the Range Rover and Range Rover Sport in Solihull are anticipated to restart later this week. However, the timeline for the Halewood plant’s output remains uncertain.
To assist its direct suppliers affected by the interruption, JLR has introduced an accelerated-payment scheme. This initiative allows Tier 1 suppliers to receive payment for new orders shortly after placement, rather than up to two months post-delivery, potentially enabling funding to arrive 120 days sooner than usual. The expectation is that these suppliers will extend similar terms to their own vendors, thus facilitating a quicker financial flow throughout the supply chain. JLR is funding this scheme through a commercial bank’s credit, independent of a £1.5 billion loan guarantee previously provided by the government.
Despite the resumption of production being seen as a positive development, concerns persist regarding many smaller suppliers who remain in financial distress due to prolonged inactivity. Reports indicate that some companies have been reliant on JLR and have had limited income in recent weeks while still facing ongoing costs. For example, Genex UK, a smaller company pressed into laying off staff due to cash flow issues, has raised alarms about the adequacy of governmental support during this crisis.
Source: https://www.bbc.com/news/articles/c99gd88kgxdo?at_medium=RSS&at_campaign=rss