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Members of Parliament representing constituencies in the West Midlands and Merseyside have jointly appealed to the government for financial assistance to support supply-chain firms impacted by the recent cyber attack on Jaguar Land Rover (JLR).
Production lines at JLR have been halted for over two weeks, raising concerns that some companies may face insolvency without immediate intervention.
While a resolution to the disruption remains uncertain, suppliers have been informed that production at JLR’s facilities is not expected to resume before September 24th.
The government has indicated that JLR is taking the lead in supporting its supply chain, while also stating its intention to engage in discussions with affected businesses.
JLR directly employs approximately 30,000 individuals, with an additional 200,000 employed within its extensive supply chain.
Antonia Bance, the Labour MP for Tipton and Wednesbury and a member of the Business and Trade Committee, is among the signatories of the letter addressed to the business secretary.
She stated that the aim of the letter is to ensure adequate attention is given to the matter and that the potential risks to jobs within the supply chain are fully understood.
Bance noted that JLR executives have provided briefings to MPs, but have been constrained in what information they can share, including the anticipated duration of the disruption.
She added that she has received reports from supply-chain firms experiencing acute cash-flow difficulties.
This has led to uncertainty among some firms regarding their ability to continue employing staff.
“Several plants in my constituency have sent their entire workforce home and ceased production,” Bance stated.
“The majority are continuing to pay their staff, but this places a significant financial burden on these often small businesses, especially given the indefinite nature of the situation.”
She further noted that firms have approached their lenders and secured extensions to their overdraft facilities.
While JLR is considering measures to support its supply chain, Bance believes that government assistance, such as a furlough scheme or loan guarantees, could be instrumental.
She argued that such support would help preserve jobs and skills within the region.
“These are not businesses that are otherwise struggling; they are thriving businesses looking to expand their workforce. Had this cyber attack not occurred, they would be operating at full capacity leading up to Christmas,” Bance explained.
She added that it would be “completely understandable” if employees began seeking alternative employment if they lacked confidence in their current firms’ ability to sustain their jobs.
Bance asserted that Tata, JLR’s parent company, should be doing “absolutely everything they can, including financial assistance,” to ensure the survival of the supply chain.
“I believe the owners have a responsibility, but I also believe that if we aspire to be a country that manufactures again, if we take pride in our industry – and in the West Midlands, we are immensely proud of what we produce and sell globally – government intervention may be necessary.”
Chris McDonald, Minister for Industry, stated that he has met with West Midlands Mayor Richard Parker and JLR executives to discuss their plans and will engage with supply chain businesses in the coming days.
“We recognize that this is a concerning time for those affected, and while Jaguar Land Rover is taking the lead on supporting its own supply chain, our cyber experts are providing ongoing support to resolve the issue as quickly as possible,” he said.
The signatories to the letter included:
West Midlands
Merseyside
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