Government could buy Jaguar Land Rover parts to prevent job losses after cyberattack

"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."

"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 government is considering buying parts from Jaguar Land Rover's 700-strong supplier network and selling them back once production resumes to prevent mass job losses. A cyberattack on 31 August forced JLR to freeze output across plants in the UK, Slovakia, Brazil and India, now entering its fourth week and costing hundreds of millions of pounds. Smaller suppliers on just-in-time schedules face existential risk, with some pausing production and sending workers home. JLR has paid about £300m to partners and assigned staff to manually process payments. Ministers would face storage and demand-risk hurdles if they intervene.

Read at Business Matters