LONDON (Reuters) -Britain’s biggest carmaker, Jaguar Land Rover (JLR), said on Tuesday some factories would restart manufacturing on Wednesday after an almost six-week shutdown following a cyberattack, one of the country’s most disruptive hacks.
To try to help smaller parts suppliers who have been pushed to the brink after weeks without business, JLR also announced it would be providing some companies with up-front cash for parts during the production restart phase.
The luxury carmaker, owned by India’s Tata Motors, has three factories in Britain, which together produce about 1,000 cars per day, and economists had warned of the impact of a prolonged shutdown on the country’s manufacturing output.
HIGH PROFILE HACKS
JLR was the latest high profile cyberattack in Britain this year, and comes after one of the country’s major retailers Marks & Spencer lost about 300 million pounds (about $400 million) after a breach forced it to shut down its online shop for two months.
The incidents highlight the vulnerability of global business to increasingly sophisticated and more frequent attacks. Last month, a ransomware attack on check-in services left passengers stranded across major European airports.
JLR, which analysts estimated was losing around 50 million pounds per week from the shutdown, was provided with a 1.5 billion pound loan guarantee by the British government in late September to help it support its suppliers.
Ministers wanted to protect the 104,000 jobs JLR says it supports across Britain, and had been involved in talks trying to help production restart.
PHASED RESTART
JLR said in its statement its engines and battery units would restart work on Wednesday, as well as parts of its vehicle production plant including its body shop and paint shop, meaning the return of some of its 33,000 staff to work.
Production lines for the Range Rover and Range Rover Sport vehicles at its main factory in Solihull will start later this week, the company added.
Qualifying suppliers of parts used in the company’s just-in-time production lines will now be paid shortly after the point of order, JLR said, compared to a previous 60-day post invoice arrangement, helping to allay fears that some smaller businesses could go bust.
“Our suppliers are central to our success, and today we are launching a new financing arrangement that will enable us to pay our suppliers early, using the strength of our balance sheet to support their cash flows,” JLR’s chief executive Adrian Mardell said in a statement.
Initially only qualifying JLR suppliers critical to the restart of production will be able to access the scheme but it will later be expanded, JLR added.
($1 = 0.7445 pounds)
(Reporting by Yadarisa Shabong in Bengaluru and Sarah Young in London; Editing by Sonia Cheema, Elizabeth Piper and Louise Heavens)
