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Jaguar Land Rover resumed manufacturing from Oct 8 after a cyberattack on Aug 31
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The cyberattack disrupted JLR’s database, halting production and sending 33,000 staff home
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JLR introduced early payment financing to suppliers with majority prepayment on orders
Tata Motors Ltd.-owned Jaguar Land Rover has restarted manufacturing operations and introduced a new financing solution to pay suppliers early, over a month after a cyberattack crippled the company.
The UK-based luxury car brand suffered a massive cyberattack on Aug. 31, which disrupted most of its major operations. The attack hit JLR's database, which had crucial orders and inventory systems, bringing the company's production operations to a standstill.
JLR had asked a majority of its 33,000 employees to stay at home until it resumed operations.
The phased restart of JLR's manufacturing operations will begin at the Electric Propulsion Manufacturing Centre (EPMC) from Oct. 8, according to a statement on Tuesday.
"JLR employees will begin to return on Wednesday to the company's stamping operations in Castle Bromwich, Halewood and Solihull in the UK. This activity will be closely followed by vehicle manufacturing in Nitra, Slovakia, and restart of the Range Rover and Range Rover Sport (MLA) production lines in the Solihull facility this week," the statement said.
JLR also said its is working with a banking partner for a short‑term financing scheme. Qualifying suppliers will receive a majority prepayment shortly after the point of order and a final true‑up payment on receipt of invoice, the company said.
The foundational work for the recovery programme was "firmly underway" and that certain parts of its digital estate were operational, JLR said last week. The carmaker was reportedly losing $68 million a week due to the closure.
Tata Motors Group CFO P.B. Balaji has stressed on JLR's strong financial position, stating that they have cleared over $5 billion of debt in the last three years. This, he stated, provides JLR with the ability to secure additional short-term liquidity if needed.
The company has assured that outstanding payments will be settled in the coming weeks as its capacity for processing payments ramps up.
The demand outlook for Jaguar Land Rover remains challenging in the near term for Europe, China and US regions, while domestic passenger vehicle sales may improve after GST cuts, Tata Motors said last month.
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