Jaguar Land Rover Resumes Production After Cyber-Attack Disruption

Jaguar Land Rover (JLR) announced it will begin a phased restart of its manufacturing operations on September 6, 2023, following a cyber-attack that severely impacted its factories over a month ago. The attack, which occurred on the last day of August, forced the British automaker to shut down production and retail operations globally.

JLR is moving quickly to restore normality, aiming to bring its systems back online and resume vehicle production in several key locations. The restart will take place across its facilities in the West Midlands, including the engine manufacturing plant in Wolverhampton and the battery assembly centre in Hams Hall, near Birmingham. Additional operations will also resume at its stamping plants in Castle Bromwich, Halewood, and Solihull, which includes critical areas like the body shop, paint shop, and logistics centre.

Following the restart in the UK, vehicle manufacturing in Nitra, Slovakia, will also resume soon, alongside the production lines for the Range Rover and Range Rover Sport in Solihull. An update regarding operations at the Halewood plant on Merseyside is expected shortly.

JLR Chief Executive Adrian Mardell emphasized the significance of this development, stating, “This marks an important moment. We know there is much more to do, but our recovery is firmly under way.” The company has faced challenges during this period, including the reliance on a manual payment system for settling invoices. However, automated payment systems have now been re-established.

In a bid to support its suppliers during the recovery phase, JLR introduced a new financing scheme, which will allow qualifying suppliers to receive cash upfront. This initiative aims to accelerate payments significantly, reducing the typical payment terms from 60 days post-invoice to as little as 120 days sooner than standard arrangements allow. Mardell stated, “Our suppliers are central to our success, and today we are launching a new financing arrangement that will enable us to pay our suppliers early, using the strength of our balance sheet to support their cash flows.”

As JLR transitions back to full production capacity, the company remains focused on restoring efficient operations while providing vital support to its supply chain partners. The phased restart is a crucial step in ensuring the resilience of Jaguar Land Rover as it navigates the challenges posed by recent disruptions.