Jaguar Land Rover Suppliers on Brink of Financial Collapse After Cyber Attack

Jaguar Land Rover Suppliers Face Financial Strain After Cyber Attack Around 100,000 people in the Jaguar Land Rover (JLR) supply chain have been impacted by the cyber attack that occurred earlier this month. According to Labour MP Sarah Edwards, some suppliers are facing a severe cash crisis, with just seven to ten days of money left. Edwards, a member of the government's Business and Trade Committee, spoke about the concerns raised by 10 companies within the supply chain during a meeting on Thursday. "They're very worried, they are concerned," she said. "It's imperative suppliers are paid very quickly." The affected companies cover a cross-section of first-line direct suppliers, including those involved in manufacturing, logistics, and other essential services. Edwards expressed particular concerns about smaller suppliers who may struggle to survive without timely payment. JLR employs approximately 30,000 people directly, with an additional 100,000 in the supply chain. The company has plants in Solihull, Wolverhampton, and Merseyside. Suppliers have not been paid by JLR since the end of August, according to Edwards. The cyber attack on JLR's systems has caused significant disruption to its operations, leading to concerns about the financial stability of suppliers. While JLR has acknowledged the impact of the attack, it has yet to provide a clear timeline for resolving the issue. Industry experts have emphasized the importance of timely payment to suppliers, citing the potential long-term consequences of delayed payments. "The ripple effect of delayed payments can be significant," said one expert. "Suppliers may struggle to meet their own financial obligations, leading to a domino effect." JLR has not commented on the specific concerns raised by Edwards or the meeting with the Business and Trade Committee. The company has stated that it is working to resolve the issue as quickly as possible. The situation highlights the need for greater transparency and communication between companies and their suppliers during times of crisis. As the issue continues to unfold, attention will focus on how JLR addresses the concerns raised by its suppliers and ensures timely payment. In a statement, a spokesperson for the Department for Business and Trade said: "We are aware of the concerns raised by suppliers and are working closely with JLR to resolve the issue as quickly as possible. We understand the importance of timely payment to suppliers and will continue to monitor the situation." The impact on suppliers is a pressing concern, with some facing financial ruin if payments are not made promptly. As the situation continues to evolve, it remains to be seen how JLR will address the concerns raised by its suppliers and ensure their financial stability. Background: Jaguar Land Rover's cyber attack has caused significant disruption to its operations, impacting around 100,000 people in the supply chain. The company employs approximately 30,000 people directly, with an additional 100,000 in the supply chain. The meeting between the Business and Trade Committee and JLR suppliers highlighted the severity of the situation, with some companies facing financial ruin if payments are not made promptly. Industry experts have emphasized the importance of timely payment to suppliers, citing the potential long-term consequences of delayed payments. Additional Perspectives: Industry experts have expressed concerns about the impact on smaller suppliers who may struggle to survive without timely payment. "The ripple effect of delayed payments can be significant," said one expert. "Suppliers may struggle to meet their own financial obligations, leading to a domino effect." Current Status and Next Developments: JLR has acknowledged the impact of the cyber attack but has yet to provide a clear timeline for resolving the issue. The company is working closely with the Department for Business and Trade to address the concerns raised by suppliers. As the situation continues to unfold, attention will focus on how JLR addresses the concerns raised by its suppliers and ensures timely payment. Industry experts will continue to monitor the situation, emphasizing the importance of transparency and communication between companies and their suppliers during times of crisis. *Reporting by Bbc.*