3 godzin temu
Jaguar Land Rover has resumed production after weeks of disruption caused by a major cyber attack that hit the British car maker on August 31. The company welcomed back 1,000 employees to its engine plant in Wolverhampton on Wednesday, marking the beginning of a phased restart across its operations.
Range Rover production lines in Solihull will restart on Thursday, whilst stamping operations in Castle Bromwich, Halewood in Merseyside, and Solihull have already resumed on Wednesday. Workers had been told to work from home after the firm's systems were compromised.
Luis Vara, JLR's global manufacturing director, said there was a "strong sense of unity and momentum" among production workers. "Today we've welcome back 1,000 employees to Wolverhampton and there is a strong sense of unity and momentum as we get back to doing what we do best, building quality luxury vehicles for our customers," he said.
Phased production restart
Wolverhampton was chosen as the first site to restart because it produces all engines for JLR vehicles, including those manufactured in Nitra, Slovakia, and batteries for the assembly centre in the West Midlands. The controlled restart prioritises engine production before vehicle assembly begins at other locations.
The timing of the cyber attack proved particularly damaging, occurring just before September when new registration plates are released. This period traditionally sees boosted demand for new vehicles, making the production freeze especially costly for the company.
Sharp sales decline
The cyber incident contributed to a sharp drop in JLR's sales figures for the July to September quarter. Sales fell by 17.1% to 85,495 units compared to the same period last year, with UK sales dropping by nearly a third.
Wholesale volumes tumbled by 24.2% year-on-year to 66,165 units. JLR described it as a "challenging quarter" as the company also faced the impact of higher US tariffs alongside the production freeze.
Government support measures
The Government announced it would underwrite a £1.5 billion loan guarantee to JLR to provide suppliers with payment certainty. This measure aims to bolster JLR's cash reserves and support the company's supply chain, which is the largest in the UK automotive sector.
The supply chain employs around 120,000 people and consists largely of small and medium-sized businesses. JLR announced an extended support package on Tuesday that will see suppliers paid up to 120 days earlier than usual payment terms.
Broader cyber threat
The attack on JLR reflects a wider pattern of cyber incidents affecting major British businesses. Recent months have seen similar attacks on beer giant Asahi, high street retailer Marks & Spencer, and nursery group Kido Schools.
Downing Street described the incident as "a concerning time for workers at Jaguar Land Rover and, of course, across the supply chain". The company has committed to paying back financing costs for suppliers who use the accelerated payment scheme during the restart phase.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
