Jaguar Land Rover (JLR) has resumed Range Rover production at its Solihull facility. Approximately 1,000 employees have also returned to work at the company’s Wolverhampton engine plant, marking a step towards restoring full vehicle production. JLR reported a significant decline in sales following a cyber-attack, describing the last quarter as challenging due to this incident and increased tariffs in the U.S.
Luis Vara, the global manufacturing director, noted a feeling of unity as employees resumed their roles. He remarked that the company is returning to its core activity of producing quality luxury vehicles. Stamping operations at the Castle Bromwich and Halewood plants have also recommenced. The Wolverhampton site was prioritized for restarting operations because it produces all engines for JLR vehicles.
The cyber-attack occurred at a critical time, coinciding with the anticipated launch of new 75-series number plates, which typically stimulate demand. JLR’s sales fell by 17.1% in the period from July to September year over year, with a notable third of their UK sales decreasing. The company attributed these figures partly to the production halt that began in early September.
In response to the challenges faced by its suppliers following the cyber-attack, JLR has introduced a program to expedite payments to direct suppliers, some of whom have imposed layoffs due to revenue reductions. Additionally, JLR committed to covering financing costs for suppliers participating in this payment initiative during the restart period. However, industry experts have indicated that while the resumption of production is positive, many smaller suppliers continue to face significant difficulties.
Source: https://www.bbc.com/news/articles/c3w5g6683p8o?at_medium=RSS&at_campaign=rss