The Government is exploring support measures to prevent Jaguar Land Rover supplier firms from collapsing while the carmaker remains shut down due to a cyber attack. Ministers are weighing several options to keep the supply chain companies operating until JLR resumes production.
JLR halted all production at the end of August after hackers targeted the company's systems. The car manufacturer has now extended the production pause until October 1 as it continues addressing the cyber security incident's impact.
Government intervention options
Officials are considering purchasing component parts directly from JLR suppliers to maintain their cash flow during the shutdown. This approach would allow suppliers to continue trading while awaiting the restart of vehicle production.
The BBC reports that government-backed loans represent another option under consideration. Ministers could also purchase and stockpile automotive parts to support struggling suppliers.
Union pressure for worker support
Trade unions have urged the Government to introduce a Covid-style furlough scheme for workers at affected supplier companies. However, officials are expected to reject this proposal due to the substantial costs involved.
MPs from the Government's Business Select Committee will meet with JLR suppliers on Thursday. They plan to relay their discussions directly to ministers following these consultations.
Financial impact assessment
Industry experts estimate JLR faces approximately £120 million in financial losses from the factory shutdown. This figure increases significantly for each additional week of extended closure.
The cyber attack has forced closure of JLR's Halewood facility on Merseyside, its Solihull plant in the West Midlands, and the Wolverhampton engine manufacturing site. These facilities typically produce more than 1,000 vehicles daily under normal operations.
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
