Following the cyber incident affecting the UK’s largest automotive employer, the focus is now on restarting full production in a safe and secure manner – while safeguarding the wider supply chain which has been severely impacted.
Mike Hawes, SMMT chief executive said, “We know JLR is working around the clock to return to full operations as quickly as possible and it was positive news this week that some IT systems have been brought back online, with production expected to resume shortly.
“Until full production is restored, however, SMEs and smaller firms lower down the chain will struggle, particularly with cashflow, and must be supported, else there is a risk of lasting damage to this highly valuable sector of the economy.”
He added that these businesses underpin not one company but many UK manufacturers – building to order, at pace, and delivering diverse skilled and jobs right across the country. That’s why it is right that government intervened this week to provide short-term assurance in the form of a £1.5bn UK Export Finance loan guarantee for JLR. This will help with JLR’s liquidity – and that of their tier one suppliers – but the speed of deployment is crucial and consideration must be given by Government to additional measures that will directly support the lower tier suppliers.
SMMT is actively engaged with JLR and Government, as well as our members via our Automotive Components Section, to help assess the impact and identify the additional appropriate measures that would ensure suppliers can bridge cashflow gaps and are resilient in the longer term.
