JLR restarts production, launches supplier cash-flow plan after cyberattack

On the Dash:

• Jaguar Land Rover has begun a phased restart of its manufacturing operations after a cyberattack in late August disrupted production.
• The company is providing upfront cash to critical suppliers, supported by a UK government-backed 1.5 billion-pound guarantee.
• Full production, including Range Rover lines and the Halewood plant, will resume later this week, with further updates expected.

Jaguar Land Rover (JLR) has begun to restart parts of its manufacturing operations after a cyberattack in late August forced the automaker to shut down its computer systems and halt production.

To assist suppliers affected by the disruption, the UK automaker is now providing upfront cash payments to critical partners. This program will soon expand to include additional vendors, including some non-production suppliers.

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This initiative follows the UK government’s intervention, which included a 1.5 billion pound ($2.02 billion) loan guarantee aimed at bolstering JLR’s cash reserves and ensuring timely payments to its suppliers.

Starting Wednesday, operations will resume in engine building and battery assembly centers, as well as metal stamping and certain activities in the body shop, paint shop, and logistics. JLR will resume vehicle production at its Nitra, Slovakia, facility and restart the Range Rover and Range Rover Sport lines at the Solihull plant in the UK later this week.

JLR operates plants in Solihull and Wolverhampton in the West Midlands, along with Halewood in Merseyside. Its parent company, Tata Motors of India, is overseeing the recovery efforts in coordination with the UK government.

The cyberattack considerably delayed operations and strained JLR’s supply chain, prompting the company to implement a cash-flow plan that ensures suppliers deliver critical components to manufacturing lines on schedule. The company will provide an update on next steps, including operations at the Halewood plant, in the coming days.

The phased restart signifies progress in JLR’s recovery, but this incident highlights the increasing vulnerability of automakers to cyberattacks. Analysts indicate that the government-backed loan underscores the strategic importance of JLR to the UK auto industry and the overall stability of the supply chain.