The government is weighing extraordinary measures to shield Britain’s manufacturing base from the fallout of Jaguar Land Rover’s crippling cyberattack, including buying up parts from suppliers to prevent mass job losses.
Business Secretary Peter Kyle is understood to be considering a scheme where ministers would purchase parts from JLR’s 700-strong supplier network and sell them back once production resumes. The move comes after a hack on 31 August forced JLR, owned by India’s Tata Motors, to freeze output across plants in the UK, Slovakia, Brazil and India.
The shutdown, now entering its fourth week, has cost the carmaker and its supply chain hundreds of millions of pounds. Unions have warned that the stoppage poses an existential threat to smaller suppliers reliant on JLR’s “just in time” schedules, with some already pausing production and sending workers home.
JLR has scrambled to keep its network afloat, reportedly paying £300m to partners in recent days and assigning 50 staff to manually process payments. But with no end yet in sight, pressure is building on ministers to intervene.
Kyle told workers earlier this week: “Getting JLR back online as soon as possible is my top priority, providing much-needed certainty to workers and suppliers.”
A government purchase scheme would face hurdles, including limited storage capacity for the vast volumes of car parts, and the assumption that JLR’s lost production does not translate into permanent lost sales.
The cyberattack has struck at a vulnerable moment for JLR. The carmaker’s pre-tax profits plunged 49% to £351m in the three months to June as US tariffs bit, while new electric models are delayed until next year. The group, which employs 32,800 in the UK, has also just announced a change in leadership, with Tata Motors finance chief PB Balaji set to replace Adrian Mardell as chief executive in November.
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Government could buy Jaguar Land Rover parts to prevent job losses after cyberattack