The UK government is weighing extraordinary intervention to shield the country’s manufacturing base from the severe fallout of a cyberattack that has crippled Jaguar Land Rover (JLR), forcing a month-long production freeze across its global plants.
Business Secretary Peter Kyle is examining a temporary scheme under which ministers would buy up parts from JLR’s 700 suppliers and sell them back once production restarts. The proposal aims to protect thousands of jobs at risk as smaller firms in the automaker’s supply chain face mounting financial strain.
The hack, which struck on 31 August, has halted output at JLR’s facilities in the UK, Slovakia, Brazil and India. The suspension, now entering its fourth week, has already cost the company and its suppliers hundreds of millions of pounds.
Unions have sounded the alarm over the crisis, warning that smaller businesses dependent on JLR’s “just-in-time” production model could collapse if the shutdown continues. Some have already scaled back operations or sent workers home.
In recent days, JLR has scrambled to keep its network afloat, reportedly disbursing £300 million to suppliers and deploying 50 staff to manually process payments. Despite these measures, the automaker’s supply chain remains under severe pressure, prompting growing calls for government support.
Kyle, who met workers earlier this week, reassured staff that the issue is being treated with urgency. “Getting JLR back online as soon as possible is my top priority, providing much-needed certainty to workers and suppliers,” he said.
Any government-backed purchase scheme, however, would face significant hurdles. Storage capacity for the vast volumes of car parts is limited, and ministers would need to ensure that the lost production does not translate into permanently lost sales. Analysts caution that such a plan carries risks but say it underscores the scale of the crisis facing Britain’s largest carmaker.
The attack has come at a particularly difficult moment for JLR. The company reported a 49% drop in pre-tax profits to £351 million in the three months to June, weighed down by US tariffs, while the launch of its new electric models has been delayed until next year.
Adding to the uncertainty, JLR has announced a leadership change, with Tata Motors finance chief PB Balaji set to replace Adrian Mardell as chief executive in November.
With 32,800 people employed by JLR in the UK and thousands more jobs tied to its supply network, the cyberattack has evolved from a corporate crisis into an issue of national economic concern. The government now faces mounting pressure to step in to prevent lasting damage to one of Britain’s most important industrial sectors.
