Government officials are contemplating intervention to assist Jaguar Land Rover's supply partners following the automotive manufacturer's production halt caused by a cyberattack.

The late August incident forced JLR to shut down its information technology systems. Manufacturing operations remain halted until at least the following month.

Concerns are mounting that certain suppliers, particularly smaller companies that depend exclusively on JLR contracts, may face bankruptcy without assistance.

One proposal under consideration involves the government purchasing component parts manufactured by these suppliers to maintain their operations until JLR resumes production.

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Should the government intervene, this would reportedly mark the first instance of a company receiving assistance due to a cyberattack.

JLR, under the ownership of India's Tata Motors, typically produces approximately 1,000 vehicles daily across its three manufacturing facilities in Solihull and Wolverhampton in the West Midlands, and Halewood in Merseyside.

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Nevertheless, employees were dismissed following the security breach - which became public on September 1st - without a definitive return schedule.

Roughly 30,000 individuals work directly at the company's facilities, with approximately 100,000 employed by supply chain companies. Some suppliers work exclusively with JLR, while others provide components to additional automotive manufacturers.

Authorities are investigating the incident, which reportedly costs the company a minimum of 50 million euros weekly in production losses.

 

Labor organizations have requested a furlough program similar to those implemented during the pandemic, but government officials have dismissed this possibility due to its anticipated expense, according to reports.

Although government procurement and storage of automotive components remains a potential solution, such an approach would create significant logistical obstacles. The manufacturing operations of JLR depend on precise timing and location for component delivery.

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Nevertheless, industry specialists concur that inaction could lead to financial collapse for supply chain companies that provide employment for thousands of workers.

An additional possibility under review involves offering government-guaranteed financing to suppliers, although suppliers reportedly view this option unfavorably.