Ministers are under mounting pressure to bail out suppliers of Jaguar Land Rover (JLR) after a crippling cyber-attack meant production shutdowns have extended into next month.
Britain’s largest carmaker yesterday said its factories will remain closed until at least October 1 as it reels from the havoc wreaked by hackers who broke into its computer systems at the end of August.
While the crisis is estimated to have cost JLR £2billion in lost sales, it is feared it could also lead to the collapse of the supply chain as businesses lay off staff and halt production.
As Business Secretary Peter Kyle visited the West Midlands for talks with JLR and suppliers yesterday, the Government faced renewed calls to act.
Local Labour MP Antonia Bance said the production freeze threatened the ‘disintegration’ of the supply chain.
‘JLR is a jewel in the crown of British manufacturing,’ she said.
Jobs threat: Business secretary Peter Kyle MP talks to employees during a visit to Jaguar Land Rover supplier, Webasto, in Sutton Coldfield in the West Midlands
‘But whilst 34,000 are employed at JLR, there are over 200,000 in the supply chain experiencing really profound knock-on effects.
‘We’re seeing production lines closed across the West Midlands and further afield, and suppliers having a real cash crunch.
‘What this risks is a disintegration of the entire supply chain. When JLR stands back up and is ready to go, it may be that some of the supply chain isn’t ready if they’ve lost skilled labour they rely on or some businesses have gone under.’
JLR is the latest major UK company to be targeted by hackers, after attacks on the likes of Marks & Spencer and the Co-op.
Trade union Unite urged the Government to set up a furlough scheme to subsidise the wages of workers in the supply chain, ‘to protect jobs and industries that are a vital part of the economy’.
The Government has refused to sanction such support. Saqib Bhatti, a Tory MP in the West Midlands, said this ‘failure’ to act ‘could have really significant economic consequences’.
Labour’s Liam Byrne, another local MP and chairman of the business and trade select committee, said: ‘JLR is not just a carmaker. It is the heart of our advanced manufacturing, the anchor of a vast supply chain, and a cornerstone of both our regional and national economy.
‘This is a test for Government. We will keep pressing ministers to track both the immediate and the wider economic fallout – and to be ready to act.’
Kyle said: ‘I know this is a deeply worrying time for all affected.
‘Getting JLR back on-line as soon as possible is my top priority. This Government is on the side of our world-leading automotive sector. We are doing everything we can to minimise the impact of this incident.’
JLR said: ‘Our focus remains on supporting customers, suppliers, colleagues, and our retailers who remain open.
‘We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.’
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