Some production is set to resume today at carmaker Jaguar Land Rover (JLR) as it continues to recover from a serious cyber-attack.
Its production lines have been at a standstill for around six weeks, since the start of September, following the attack, but today the phased return of staff will begin at some sites, including the Halewood site on Merseyside (pictured).
JLR has also announced a programme to fast-track payments to direct suppliers, some of whom had been forced to lay off workers after revenues from JLR dried up following the attack.
Initially the scheme will be confined to the most critical suppliers needed for restarting production, but it will later be expanded in phases. Initially, “Tier 1” suppliers, with whom the company has a direct relationship, will be able to get paid for new orders shortly after they have been placed, rather than up to two months after delivery. JLR says this will enable them to get funding up to 120 days earlier than normal.
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There is an expectation that these companies will then offer similar terms to their own suppliers, allowing funding to flow rapidly down the supply chain. The scheme is being funded by JLR itself, using credit provided by a commercial bank. It is not linked to the £1.5bn loan guarantee recently offered to the carmaker by the government.
JLR said the phased restart for its own workers will begin at its Wolverhampton engine plant and its battery assembly centre in Hams Hall.
Employees who work in facilities which prepare pressed metal bodywork, including at the Halewood site and further sites in the Midlands, will also be brought back in, although it is not yet clear when actual output will resume at Halewood.
Experts told the BBC it is still likely to be several weeks before the production lines are running as normal.
JLR also released figures showing a sharp drop in sales during the three months to 30 September, partly due to the shutdown following the cyber attack.
Wholesale sales, reflecting deliveries to dealers, were down 24.2% from a year earlier, while retail sales fell 17.1%.
JLR described the period as “challenging”, with sales also falling as a result of the planned withdrawal of older models ahead of the launch of new Jaguar and the impact of tariffs on its exports to the US.
Business and Trade Secretary Peter Kyle welcomed the news that some production would resume:
“This is very welcome news for workers and suppliers, but I know many are still under pressure, particularly further down the supply chain,” he said. “My focus will remain on helping JLR resolve this cyber incident, making further progress towards restarting production, and supporting the long-term health of our automotive supply chain.”
