Particularly impacted are small suppliers that consider JLR to be a major client. In nations such as Slovakia, suppliers have put personnel on shorter duty with the government paying some of their wages.
According to persons familiar with the situation, the UK is in discussions to provide assistance to auto suppliers affected by the aftermath of a cyberattack at Jaguar Land Rover that has halted production at the biggest automaker in the nation.
Peter Kyle, the business secretary, is developing strategies to avoid anarchy in a UK automotive supply chain that depends on the Range Rover manufacturer. As the automaker works to reduce a backlog of unpaid invoices, some suppliers have sent employees home, while others are waiting for JLR to pay them.
According to a person who requested not to be named while sharing the information, Kyle is looking at relieving the pressure on suppliers by buying parts for JLR and then reselling them to the manufacturer once it is operational again. According to one of the persons, JLR is participating in the discussions but is not requesting any assistance for itself.
It comes as JLR said on Thursday that several of its online systems are operational again, enabling it to process more supplier invoices, ship components to dealers more rapidly, and sell and register cars more swiftly. “Our rehabilitation program‘s basic work is well underway,” a spokeswoman said.
For the fourth week in a row, JLR is dealing with the consequences of the hack. The closure has affected the whole car sector, with its facilities in the UK, Slovakia, Brazil, and India not operating since the beginning of the month. Restarting production processes is the company’s goal for next Wednesday; it will probably take much longer to go back to full pace.
Particularly impacted are small suppliers that consider JLR to be a major client. In nations such as Slovakia, suppliers have put personnel on shorter duty with the government paying some of their wages.
Potential issues with the support program Kyle is looking at include how to store components that have been ordered, which parts to buy, and how much of each. Separately, the union Unite has demanded vacation compensation for employees at suppliers, simulating the pandemic-era policy.
In reference to an interview with Kyle on ITV News, a government representative refused to comment. “I am here to listen, to understand, and then be the partner of JLR and the supply chain, and importantly the people in need at this tough moment,” he told the broadcaster.
The government is collaborating with JLR to “get the supply chain up and running as fast as we possibly can,” according to a post on X by Industry Minister Chris McDonald.
The stoppage is also affecting larger suppliers, such as OPmobility SE in France. According to a spokeswoman, the business is “reconfiguring its operations at various facilities as a result of one of its clients shutting down manufacturing.”