Jaguar Land Rover (JLR), the UK’s largest car manufacturer, is inching toward recovery after a devastating cyber attack in late August 2025 brought its production lines to a screeching halt. As of October 6, the company’s factories have been shuttered for six weeks, sending shockwaves through the British automotive industry and its vast supply chain.
JLR’s ordeal began when a major cyber attack forced the company to shut down its IT systems on September 1, paralyzing virtually every aspect of its business. According to Sky News, manufacturing operations have been at a standstill since the attack, with the company losing an estimated £5 million each day. Other sources, including the BBC, put the weekly cost of lost production at a staggering £50 million. The impact has been felt not only at JLR’s UK sites in Solihull, Halewood, and Wolverhampton, but also at its factories in Slovakia, China, and India.
The immediate victims of the shutdown were JLR’s 30,000 direct employees, many of whom were sent home or placed on reduced pay. But the ripple effects quickly spread to the company’s supply chain, which employs up to 200,000 people directly and indirectly. Small businesses that rely on JLR contracts have faced severe financial pressure, with some forced to lay off staff or cut hours. As David Roberts, chairman of Evtec Group—a key supplier—told the BBC, “It has had a really detrimental effect, it’s devastating. There’s a lot of vulnerable people out there who are now really concerned—the cost of living, Christmas coming up, when will they return to work in earnest?”
For many, the uncertainty has been agonizing. Engineer Ben Brindley, one of the affected workers, described the emotional toll: “There’s only so much refurbishment or decorating you can do whilst you’re at home. The longer it goes on for, the more worried you get really. You start to think—will I have a job to come back to?”
The cyber attack, claimed by the hacking group Scattered Spider (also known as Scattered Lapsus$ Hunters), has exposed the fragility of just-in-time manufacturing and the interconnectedness of modern supply chains. Industry bodies have reported a growing risk of smaller businesses folding as cash inflows dry up and bills continue to mount. Union Unite warned that the supply chain is “on the brink of collapse,” emphasizing that “workers in the JLR supply chain must not be made to pay the price for the cyber attack,” according to general secretary Sharon Graham.
Amid mounting pressure, the UK government stepped in with a £1.5 billion loan guarantee aimed at protecting jobs and supporting JLR’s suppliers. Business Secretary Peter Kyle described the intervention as a “big moment,” saying, “It gives JLR and its suppliers the resources they need to get through this challenge.” The loan, backed by the Export Development Guarantee scheme, is reportedly the first time the government has stepped in to help a company hit by a cyber attack. JLR is expected to repay the loan over five years, shoring up its cash reserves to ensure suppliers are paid.
However, not everyone is convinced the government’s efforts go far enough. Some suppliers have criticized the support as a “toothless solution,” arguing that funds have not reached the smaller companies most at risk. “We asked the government directly, at ministerial level, to directly support the sector. They listened, but they did nothing. It’s almost like they’ve turned a deaf ear to the needs of advanced manufacturing, which is a key platform of the Industrial Strategy,” said Roberts. He called for targeted support for labor and payroll costs, as well as tax relief, to help firms weather the storm.
JLR itself has reportedly agreed to a separate £2 billion funding facility to maintain its financial buffers, declining to take up the government’s £1.5 billion loan guarantee so far. The company insists it has met its commitments to suppliers, but those further down the chain continue to struggle with uncertainty and mounting losses. As Sky News notes, the main concern is that indirect suppliers can access some relief—either from JLR or via improved government schemes.
Despite the gloom, there is a glimmer of hope on the horizon. Testing for a controlled, phased resumption of manufacturing has begun at JLR’s factories, with the Wolverhampton engine plant likely to be the first to restart. “As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world-class vehicles,” a JLR spokeswoman said on October 6, echoing statements to both Sky News and the BBC. “We have informed colleagues, retailers and suppliers that some sections of our manufacturing operations will resume in the coming days. We continue to work around the clock alongside cybersecurity specialists, the UK government’s NCSC [National Cyber Security Centre] and law enforcement to ensure our restart is done in a safe and secure manner.”
Experts warn that the road back to full production will be slow and fraught with challenges. Andy Palmer, a veteran of Nissan and former Aston Martin boss, told the BBC that the supply chain was “broken and needs to be repaired.” He cautioned, “Some of them... might not make it, and if any of those fail then that’s more disruption in the supply chain.” Restarting car manufacturing, he explained, “is not like flicking a switch”—some industrial processes can take days to get up and running, and the phased approach means it will be several weeks before all operations are back at full capacity.
Throughout the crisis, JLR has kept workers, retailers, and suppliers informed about the phased restart, while also updating local MPs and investigating whether any customer data was accessed during the attack. The company has pledged to notify affected individuals if necessary, though dealerships continue to operate normally, allowing customers to book appointments and service their vehicles without interruption.
The government, for its part, says it remains in “daily contact with JLR and cyber experts to listen to concerns and what support can be provided to get production back online.” The Society of Motor Manufacturers and Traders (SMMT) and the Department for Business and Trade confirmed that government experts are working closely with JLR to restore production and understand the knock-on effects for the supply chain.
As JLR edges toward restarting production, thousands of workers across its supply chain remain in limbo, waiting and hoping that the worst is behind them. The foundational work of recovery is under way, but the true test will be how quickly the company—and the broader UK automotive sector—can bounce back from one of the most disruptive cyber attacks in recent memory.
