Regional automotive suppliers are likely to be impacted by the recent shutdown of Jaguar Land Rover's 海角视频 plants in the aftermath of a cyber attack, a key sector voice has said.
A number of firms with North East operations, producing components for car making plants, count Jaguar Land Rover (JLR) among their customers. Paul Butler, who leads the North East Automotive Alliance cluster, says the disruption will extend to the region - and at a vulnerable time for the sector.
Mr Butler said: "The cyber attack on JLR is yet another challenge for the automotive industry to face, and it comes at a time when the sector has not yet recovered from previous challenges such as Covid, semi-conductor shortages and the transition to electric vehicles.
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"JLR are the second largest volume producer in the 海角视频 behind Nissan and disruption to production will impact suppliers across the 海角视频, including here in the North East. The 海角视频 government recognise the importance of the 海角视频 automotive sector and have announced significant support for the sector in recent months.
"We know interventions such as the furlough scheme have been successful in the past and I am sure the Government will be working closely with JLR and suppliers to understand the extent of the impact and to discuss possible options to mitigate the risk.
"This does highlight some of the new challenges we face, in an increasingly digital world where we aim to connect entire supply chains the opportunities for cyber-attacks will increase. The importance of cyber security cannot be underestimated, and companies should take additional steps such as having appropriate insurance cover for such events.”
His comments come as a group of MPs has written to the Government calling on ministers to provide direct support for JLR's supply chain, which they say employs up to 200,000 people. The Merseyside and West Midlands MPs call on the Government to be "creative" and seek the support of the British Business Bank, along with commercial lenders, and consider union calls for a furlough scheme if the shutdown continues for a prolonged period.
The letter to Business Secretary Peter Kyle said: "More then two weeks since JLR paused production as a result of the cyber security incident, there is no date for production to resume. Many of us are in close contact with large businesses and SMEs in our constituencies who supply JLR directly or are part of JLR's wider supply chain.
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"It is clear that for some of these businesses, the cash flow situation is becoming serious. If this shutdown is prolonged, the predominantly 海角视频-based supply chain will no longer exist, as companies will shutter and will lay off skilled staff who are hard to replace."
This week union Unite called for a furlough scheme to be introduced for JLR workers as it said its members were being laid off with reduced or zero pay, with some being advised to sign up for universal credit. Officials pointed to a similar scheme introduced to support staff at bus manufacturer Alexander Dennis.
Sharon Graham, Unite general secretary, said: "Workers in the JLR supply chain must not be made to pay the price for the cyber attack. It is the government’s responsibility to protect jobs and industries that are a vital part of the economy. Ministers should take the lead from the Scottish government’s support package for Alexander Dennis staff and implement a similar scheme for workers in the JLR supply chain now.”
A spokesman for JLR said: “Today we have informed colleagues, suppliers and partners that we have extended the current pause in our production until Wednesday, September 24 2025. We have taken this decision as our forensic investigation of the cyber incident continues, and as we consider the different stages of the controlled restart of our global operations, which will take time.
"We are very sorry for the continued disruption this incident is causing and we will continue to update as the investigation progresses."