Jaguar Land Rover (JLR) has stated that it has initiated a ‘phased restart’ of its operations, with portions of its IT systems now restored. The company added that it is ‘working to clear a backlog of payments’ to suppliers, as its invoicing processing capacity has now improved.
The automaker halted its production lines following a cyberattack in August that compelled it to shut down its IT systems. Its manufacturing facilities are expected to stay closed at least until next month.
On Thursday, the company reported that its recovery program is ‘firmly underway’ and its Global Parts Logistics Centre, which supplies spare parts for servicing customer vehicles, is resuming full operations.
“The financial system we use to process the wholesale of vehicles has been brought back online, and we are able to sell and register vehicles for our clients faster, delivering important cash flow,” the company added.
The automaker acknowledged that the situation has been challenging for JLR, as car production has halted and employees have been temporarily relieved from duties.
Owned by India’s Tata Motors, the company usually manufactures around 1,000 vehicles daily across its three plants in Solihull and Wolverhampton in the West Midlands and Halewood in Merseyside. While some suppliers provide parts solely to JLR, others supply components to different automakers.
There have been appeals to assist suppliers whose operations are at risk due to the ripple effects of the cyberattack. One proposal under consideration involves the government purchasing the components produced by these suppliers, aiming to sustain businesses within JLR’s supply chain until manufacturing resumes.
Analysts believe that JLR can endure the crisis, though it will come at a significant financial cost. A report by The Insurer on Wednesday indicated that JLR did not have cyber insurance, meaning it will need to bear the full expense itself. The production halt has severely impacted numerous suppliers in JLR’s network, forcing them to deal with an abrupt stoppage in cash flow.
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