An extended production halt at Jaguar Land Rover (JLR) following a major cyber attack is raising significant concerns for thousands of jobs across Merseyside and the West Midlands. More than 30 Members of Parliament have now urged the government to prepare support for the automotive supply chain as the shutdown continues to impact businesses.
The car manufacturer, which operates a major plant in Halewood, confirmed its production lines will remain inactive until at least Wednesday, September 24, as it investigates the security breach. The prolonged stoppage is placing immense financial pressure on the hundreds of smaller companies that supply parts to JLR.
Key Takeaways
- Jaguar Land Rover has extended its production shutdown until at least September 24 due to a cyber attack.
- Over 30 MPs have written to the government warning of a "serious" cash flow crisis for suppliers.
- An estimated 200,000 jobs in the UK supply chain are at risk if the shutdown is prolonged.
- There are calls for a potential government-backed furlough scheme to protect skilled workers.
- The shutdown is reportedly costing JLR as much as £50 million per week.
Extended Shutdown at Halewood Plant
Jaguar Land Rover first paused production at the beginning of September after being targeted by a significant cyber attack. The company has since been working to understand the extent of the incident and secure its systems. The Halewood facility, a key site for the company's operations, remains idle along with its other UK plants.
In its most recent update, JLR announced the pause would be extended. A company statement released on Tuesday said, "Today we have informed colleagues, suppliers and partners that we have extended the current pause in our production until Wednesday 24th September 2025."
The company explained the decision was necessary for its ongoing forensic investigation and to plan for a controlled and phased restart of its global operations.
"We are very sorry for the continued disruption this incident is causing and we will continue to update as the investigation progresses," the statement concluded.
While JLR employees are banking their hours during the stoppage, the financial impact is substantial. Reports suggest the halt in production could be costing the Tata Motors-owned company up to £50 million each week.
MPs Warn of Supply Chain Collapse
The prolonged shutdown has triggered alarm among political leaders in regions heavily reliant on the automotive industry. A cross-party group of more than 30 MPs from Merseyside and the West Midlands has co-signed a letter to the Business Secretary, Peter Kyle, outlining the growing crisis.
The letter highlights the critical role of JLR's supply chain, which supports an estimated 200,000 jobs in addition to the 33,000 people directly employed by the carmaker.
UK Automotive Supply Chain
The UK's automotive supply chain is a complex network of businesses, many of which are small and medium-sized enterprises (SMEs). They provide everything from raw materials to complex electronic components, and a disruption at a major manufacturer like JLR has immediate and widespread effects.
The MPs warned that the financial situation for these suppliers is becoming critical. "It is clear that for some of these businesses, the cash flow situation is becoming serious," the letter stated. They expressed fears that if the shutdown continues for an extended period, the predominantly UK-based supply chain "will no longer exist, as companies will shutter and will lay off skilled staff who are hard to replace."
Calls for Government Intervention
In their letter, the MPs urged the government to act swiftly to prevent catastrophic job losses. While acknowledging that JLR and its parent company, Tata, have the primary responsibility to support their suppliers, they insisted that ministers must prepare a safety net.
The letter proposes several actions:
- Creative Financial Support: Encouraging ministers to work with the British Business Bank and commercial lenders to provide emergency liquidity to struggling firms.
- Potential Furlough Scheme: Urging the government to consider a direct support scheme for workers in the supply chain if the shutdown is prolonged.
- Urgent Reassurance: Asking ministers to move with urgency to reassure businesses and their employees that help will be available.
This call for action is supported by the Unite union, which has also advocated for a support scheme to ensure workers can remain in their jobs while JLR recovers its operations. The focus is on retaining the skilled workforce that is vital to the UK's advanced manufacturing sector.
The Importance of the Halewood Plant
The JLR plant in Halewood is a cornerstone of the Merseyside economy. It employs thousands of local residents directly and supports many more jobs indirectly through its extensive network of regional suppliers. The facility is responsible for producing popular models like the Range Rover Evoque and the Land Rover Discovery Sport, making its operational status critical for the local area.
Next Steps and Ongoing Uncertainty
JLR is currently conducting a supplier risk assessment in partnership with the Department of Business and Trade (DBT) to gauge the resilience of individual companies. Suppliers, including those who do not work directly with JLR, have been encouraged to contact a dedicated helpdesk.
However, with no firm date for the resumption of production, a cloud of uncertainty hangs over the entire sector. The coming days will be crucial as suppliers manage their finances and workers await news. The government's response to the MPs' letter will be closely watched by the thousands of families in Merseyside and beyond whose livelihoods depend on the UK's automotive industry.