Jaguar Land Rover (JLR) plans to resume some production following a cyber-attack that halted operations on September 1. According to the Coventry and Warwickshire Chamber of Commerce, the impact of this resumption on the supply chain may take several months to materialize.
In support of JLR and its suppliers, the UK government has announced a £1.5 billion loan guarantee. A survey conducted by the Chamber indicated that one in six businesses within JLR’s supply chain are considering layoffs, with some already implementing zero-hour contracts. A total of 84 businesses participated in the survey, which collectively employ around 30,000 individuals in the Coventry, Warwickshire, Black Country, and Birmingham areas, highlighting the widespread effects on the local economy.
While production is set to recommence initially at JLR’s engine facility in Wolverhampton on October 6, operations at other plants will return in phases. Chamber Chief Executive Corin Crane noted that JLR will begin to pay its tier-one suppliers, but it remains unclear how tier-two and tier-three suppliers will be supported. Crane expressed the need for additional financial assistance and emphasized that nearly half of the surveyed businesses have faced financial difficulties.
Coventry-based Evtec Automotive, which employs around 600 people, reported having laid off approximately 500 employees and is currently paying remaining staff 80% of their salaries using company cash flow. Chairman David Roberts questioned the speed of the government’s response to the crisis, suggesting that quicker support is essential for maintaining jobs in the advanced manufacturing sector.
Business Secretary Peter Kyle reaffirmed that the loan guarantee aims to protect jobs in the West Midlands and surrounding areas, framing it as a crucial resource for JLR and its supply chain during this challenging period.
Source: https://www.bbc.com/news/articles/c77dmyeze40o?at_medium=RSS&at_campaign=rss