Government Considers Strategic Buy Up of Jaguar Land Rover Parts Amidst Cyber Attack Fallout

The UK government is weighing up significant measures to shield the country’s automotive supply chain from the worsening impact of the Jaguar Land Rover (JLR) cyber-attack. Following the production shutdown sparked by the August incident, ministers are exploring proposals that could see the state directly purchasing parts from suppliers in a bid to safeguard manufacturing jobs and underpin stability in the sector.

The business secretary, Peter Kyle, has been at the forefront of this response, recently visiting automotive suppliers and engaging with both JLR and workers. According to industry briefings, one leading plan would involve the government acquiring inventory from JLR’s suppliers, acting as an intermediary until the carmaker can resume production across its network of factories. Components would then be sold back to JLR, once output recommences, helping to bridge a financial gap for suppliers that rely on just in time deliveries.

JLR, owned by Tata Motors, has suffered heavy disruption after the cyber incident forced widespread plant closures in the UK, Slovakia, Brazil, and India. The ongoing loss of production has exposed around 700 direct suppliers to heightened risk, threatening thousands of British manufacturing roles. Unions have called for tailored furlough schemes to support workers now facing enforced downtime, urging ministers to act swiftly as the crisis drags on.

Complexities remain around any large-scale intervention, not least the logistics of storing substantial volumes of automotive components and the question of market outlook post-shutdown. JLR’s situation has been exacerbated by falling profits, global tariff pressures, and delays to new electric vehicle launches. With suppliers unable to deliver parts, some have halted operations or sent staff home.

In response to the crisis, JLR has disbursed substantial payments, totalling about £300 million, to ease supply chain pressures. The carmaker has redeployed staff to manage payments manually due to damaged systems and aims to prioritise the most at risk suppliers. The prospect of government purchases would be unprecedented for the sector but is seen as a necessary buffer given the scale of current disruption.

Tata, the Indian multinational parent company, has significant interests in the UK and has previously benefited from government support including direct subsidies for battery and steel ventures. JLR, which employs over 32000 staff domestically, will see a change in leadership soon as PB Balaji is set to take over as chief executive in November, inheriting a brand in the midst of modernisation and crisis response.