Jaguar Land Rover’s forced production halt following a cyber-attack should serve as a stark “wake-up call” for British industry, a leading business expert has warned.
David Bailey, Professor of Business Economics at the University of Birmingham, said the disruption at JLR – which operates major plants in Solihull, Wolverhampton and Merseyside – had already left the company unable to produce any cars this month. He estimated that the shutdown had cost about 24,000 vehicles in lost output, equating to roughly £120m in lost profits and £1.7bn in lost revenue.
JLR big enough to weather storm – but suppliers at risk
Professor Bailey said that while JLR itself was large enough to absorb the immediate blow, the wider automotive supply chain was far more vulnerable. Smaller parts manufacturers and contractors, he warned, could collapse without urgent support.
“The government must step in with measures such as a furlough-style scheme or loan guarantees to stabilise suppliers,” he said. “Germany already has systems in place that automatically allow part-time working in times of shock to industry. The UK needs similar tools if it wants to build real resilience into its manufacturing base.”
The warning comes amid deepening uncertainty over when JLR’s production lines will restart. The company has said it does not expect to resume output before 24 September, leaving thousands of workers on enforced downtime.
Political pressure grows on ministers
Politicians from across the spectrum urged the government to act quickly.
Sarah Coombes, Labour MP for West Bromwich, said she had held several meetings with affected businesses in her constituency, as well as ministers, over the past week.
“The government is very aware of how important this industry is and how many jobs are tied to it,” she said. “Ministers are examining different options, but a decision is still pending.”
The Conservative Party indicated it would support intervention. A Midlands MP described the cyber-attack as “a massive blow” for JLR and called on ministers to keep “every option on the table” to safeguard jobs and investment.
Helen Morgan, Liberal Democrat MP for North Shropshire, argued that Tata, JLR’s Indian parent company, should play a leading role in propping up suppliers but stressed the Treasury also had a duty to act.
“If smaller firms in the supply chain go under, the long-term cost to the taxpayer could be far greater,” she said. “It would be better value to support them now.”
Industry under wider pressure
Professor Bailey also highlighted the broader difficulties facing the UK automotive sector. Ongoing trade disputes and tariffs imposed by the US have increased costs, while global supply chains remain fragile after years of pandemic disruption.
“The reality is JLR cannot shoulder the entire supply chain by itself,” he said. “Without government support, we risk seeing companies collapse – and once those capabilities are lost, they’re extremely hard to rebuild.”
‘No end in sight’
For now, JLR has given no firm timetable for a full recovery. With the company signalling production will remain suspended until late September at the earliest, uncertainty continues for workers and suppliers.
Professor Bailey said the incident underscored the urgent need for stronger cyber-defences and industrial safety nets.
“This is not just about one company,” he warned. “It’s about building resilience across UK manufacturing. The JLR shutdown should be treated as a wake-up call for everyone.”
