Jaguar Land Rover (JLR) remains in crisis from a extended closure. This latest disruption comes on the heels of a major cyber attack that left its IT networks incapacitated at the end of August. The cumulative effect of the episode has raised considerable fears within the supplier community and other interested parties, forcing UK ministers to act. Business Secretary Peter Kyle and Industry Minister Chris McDonald will be visiting JLR in the coming days. They plan to work with many companies within its supply chain to address increasing issues.
The Solihull-based company, best known for its luxury vehicles, has fully stopped production after the cyber attack. This disruption has a cascading effect on JLR’s operations. It places extreme financial pressure on many of its suppliers, who are living on the edge. Other employees at JLR’s supply chain companies have even been instructed to start claiming Universal Credit as the cloud of uncertainty hovers.
Steve Whitmarsh, chief executive of Run Your Fleet, a corporate car rental and breakdown service provider based in the West Midlands, expressed his worries regarding the situation. He reiterated the point that supply chain loss is not an option, and even minor disruption in the supply chain would be catastrophic to economic recovery.
“If we lose that supply chain [we’re] not going to get it back. The impact on the economy and the taxpayer will be far greater than short-term assistance,” – Steve Whitmarsh.
The West Midlands region, where JLR was born, is an effective nerve centre for JLR’s operations. Its constituency is home to both the Solihull and Wolverhampton plants. Already happening, as the policy moves forward suppliers are eager to testify to their fears. Johnathan Dudley, Crowe UK’s head of manufacturing, pointed out an increasing tendency from stakeholders. As a result, they are starting to play defense with their messaging.
“Obviously, they’re being very, very cautious because they don’t want to create panic, and equally, they don’t want to be seen to be criticising people further up the chain,” – Johnathan Dudley.
The trade union Unite has called for a furlough scheme aimed at supporting staff of JLR’s suppliers during this challenging period. Dudley underscored the need for speed. Hundreds of companies in the infrastructure supply chain are struggling and hurting right now to make payroll.
“It’s not a blame game, but it is a cry for help, because there are businesses now seeing people not paying [staff],” – Johnathan Dudley.
As ministers engage with stakeholders, Chris McDonald outlined the government’s dual priorities: assisting JLR in resuming production swiftly while maintaining the long-term health of the supply chain.
“We have two priorities, helping Jaguar Land Rover get back up and running as soon as possible and the long-term health of the supply chain,” – Chris McDonald.
JLR has given strong commitments to stand by customers and suppliers through this stormy period. An official statement from the company doubled down on their commitment to work with those impacted.
“Our focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open,” – JLR.
Representing the academic community was Prof David Bailey of the University of Birmingham. He cautioned that extended interruptions would only exacerbate supply chain issues. He stressed urgency for immediate action by government leaders.
“One way or another, the government is going to take a hit,” – Prof David Bailey.
He went on to say that if suppliers close due to financial pressures, it would make any future restart at JLR more difficult.
“If bits of the supply chain go under that’s going to make a restart at JLR much more difficult,” – Prof David Bailey.
As JLR’s shutdown continues, stakeholders remain hopeful for a resolution that prioritizes both immediate recovery and long-term sustainability of the automotive supply chain. The upcoming meetings with government officials may provide much-needed clarity and support to those navigating this unprecedented situation.