West Midlands MPs have called on intervention from government to assist in the ongoing production disruption at Jaguar Land Rover (JLR) following a cyber attack earlier this month.
The shutdown was originally expected to last until at least this Wednesday (24 September) but has now been confirmed by the company on its website that it has extended the current pause in production until Wednesday 1 October 2025. Yet, some industry sources are reporting the company could face disruption until November.
The closure has already had a significant impact on both the automotive supply chain and the local economy. The company employs over 30,000 people directly, but a further 100,000 jobs within its supply chain could be affected with layoffs a distinct possibility.
A joint-letter issued by six MPs from the West Midlands has warned as much and has called on the Department for Business and Trade to urgently use their convening power with HM Treasury and UK banks to provide short-term, fully repayable loans to stabilise affected suppliers.
Birmingham Live reported that the Conservative MPs expressed disappointment with a statement issued by the Labour-run government on September 19, criticising its lack of concrete measures to support the supply chain. ‘Words are cold comfort’, the letter states. “Without immediate action and focused support, the damage to the UK’s automotive sector and manufacturing base could be deep and irreversible.”
Prof David Bailey, of Birmingham University, called on the Government to introduce a furlough and emergency-loan scheme to protect jobs in the car parts supply chain, warning that companies in the Black Country would go bust if action was not taken. He said companies were already laying workers off and seeking emergency loans to tide them over.
Some experts have even predicted that production at JLR could be halted until November. Prof Bailey said this could be fatal for some of the small and medium-sized suppliers in the Black Country, and warned that other British car manufacturers, such as Toyota and Mini, could also be affected.
Speaking to the Express & Star Prof Baily said: “They’ve (JLR) has said they’re not going to restart until September 24 at least, but that doesn’t mean to say they will restart September 24, but by then the hit to revenue will be about £1.7bn, and to profits potentially £120m. There’s talk that this might actually go on to November, in which case we’re looking at something like 50,000 cars not being produced, and a potential hit to revenue of £3.6bn, and the loss of profit there could be over £200m. It’s huge.
“Birmingham and the Black Country is at the heart of the automotive supply chain. JLR supports 200,000 jobs in the UK, a significant chunk of those will be in the Black Country. The further you go down the supply chain, the less likely they are to have cash buffers to resist this. I think it’s started already, I’m hearing form firms that have sent workers home, laid workers off, particularly agency workers, they’ve had to go for bank loans and are running out of money.
“That’s why the government has got to intervene pretty urgently in terms of some sort of wage furlough scheme and loan fund to companies to keep them going.”
The Guardian has reported that officials at the Department for Business and Trade are understood to be speaking to JLR daily, while the National Cyber Security Centre has been working with the company to provide support.
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