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Evening Standard
Evening Standard
Technology
David Hughes

Business Secretary visits JLR as shutdown caused by cyber attack continues

Business Secretary Peter Kyle will visit Jaguar Land Rover (JLR) to meet firms in the supply chain as the beleaguered carmaker extended its shutdown in the wake of a cyber attack.

JLR, the UK’s largest carmaker, has extended its pause in production until October 1, having a knock-on impact to the companies that supply it.

Unions have demanded a furlough scheme for workers who are suffering because of the shutdown.

Industry minister Chris McDonald said: “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.

“The Business Secretary and I are visiting JLR today to host companies in the supply chain, to listen to workers and hear how we can support them and help get production back online.

“We are acutely aware of the difficulties the stoppage is causing for those suppliers and their staff, many of whom are already taking a financial hit through no fault of their own – and we will do everything we can to reassure them that the Government is on their side.”

The Unite union has called for a furlough scheme for workers in the JLR supply chain.

MPs from across the West Midlands and Merseyside, where JLR has plants, have called for Mr Kyle to consider Covid-style loans to support supply chain firms employing around 200,000 workers.

They suggest an automotive business interruption loan scheme similar to the CBILS which kept firms afloat during the pandemic shutdown.

JLR is currently taking the lead on support for its own supply chain, rather than any state intervention.

The cyber attack hit JLR on August 31 and production has been paused until at least October 1.

A JLR spokesman said: “We have made this decision to give clarity for the coming week as we build the timeline for the phased restart of our operations and continue our investigation.

“Our teams continue to work around the clock alongside cybersecurity specialists, the NCSC (National Cyber Security Centre) and law enforcement to ensure we restart in a safe and secure manner.

“Our focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open. We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.”

Labour MP for Tipton and Wednesbury Antonia Bance warned that an extended pause risked “a disintegration of the entire supply chain into JLR, which means that when JLR stands back up again and is ready to go, and it will do, once it’s got over this cyber attack, it may be that some of the supply chain isn’t ready to go, if they’ve lost the skilled labour that they rely on, or maybe some of the businesses have gone under”.

She suggested the Government could back a loans scheme, similar to the coronavirus business interruption loan scheme, and told the PA news agency: “We’re seeing production lines closed across the West Midlands and further afield and suppliers having a real cash crunch.”

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