Government Considers Financial Support for JLR Suppliers After Cyber-Attack
The UK government is considering providing financial support to Jaguar Land Rover's (JLR) suppliers after the car maker was forced to suspend production due to a cyber-attack. The attack, which occurred at the end of August, has left factories in Solihull, Wolverhampton, and Halewood shut down until next month.
According to sources, ministers are exploring the idea of buying component parts from suppliers to keep them in business until JLR's production lines are up and running again. This move is seen as a potential lifeline for smaller firms that rely solely on JLR's business, which could otherwise go bust without support.
"We're working closely with the government to explore all options to support our suppliers," said a spokesperson for JLR. "We understand the challenges they face and are committed to finding solutions."
The cyber-attack is believed to be costing JLR at least £50 million a week, with an investigation underway into its cause. The company's factories normally produce over 1,000 cars per day.
Industry experts say that the government's potential intervention could have significant implications for the automotive sector. "This is a critical moment for the UK car industry," said Professor David Bailey, an expert in automotive manufacturing at Aston University. "The government needs to act quickly to support suppliers and prevent job losses."
However, some critics argue that providing financial support to JLR's suppliers may not be the most effective solution. "We need to focus on improving cybersecurity measures across the sector, rather than just throwing money at the problem," said a spokesperson for the Confederation of British Industry (CBI).
The government has yet to confirm whether it will provide financial support to JLR's suppliers. A spokesperson for the Department for Business and Trade said that ministers were "looking at all options" but declined to comment further.
As the investigation into the cyber-attack continues, JLR's suppliers remain in limbo, waiting for a decision on their future. The government's next move will be closely watched by industry experts and stakeholders alike.
Background: Jaguar Land Rover is one of the UK's largest car manufacturers, employing thousands of people across its three factories in Solihull, Wolverhampton, and Halewood. The company's suppliers are critical to its operations, providing component parts for its vehicles.
Additional perspectives:
A spokesperson for the Unite union, which represents workers at JLR, said: "We welcome any support that can be provided to our members who work in the supply chain. We need a long-term solution to this crisis."
A government source said: "We're working closely with industry leaders and experts to find a solution that works for everyone."
Current status: The investigation into the cyber-attack is ongoing, with JLR's factories remaining shut down until next month. The government is considering providing financial support to JLR's suppliers, but no decision has been made yet.
Next developments: The outcome of the government's deliberations on supporting JLR's suppliers will be closely watched by industry experts and stakeholders. A decision is expected in the coming weeks.
*Reporting by Bbc.*