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Impact on JLR supply chain might last months - chief executive | Impact on JLR supply chain might last months - chief executive |
(about 5 hours later) | |
A cyber-attack forced Jaguar Land Rover to suspend operations | A cyber-attack forced Jaguar Land Rover to suspend operations |
It could take months before the benefits of Jaguar Land Rover resuming production filters down to the supply chain, a chamber of commerce said. | It could take months before the benefits of Jaguar Land Rover resuming production filters down to the supply chain, a chamber of commerce said. |
JLR has said it would resume some production in the "coming days" after a cyber-attack forced the carmaker to suspend operations. | JLR has said it would resume some production in the "coming days" after a cyber-attack forced the carmaker to suspend operations. |
At the weekend it emerged the government will underwrite a £1.5bn loan guarantee to the company in a bid to support its suppliers. | At the weekend it emerged the government will underwrite a £1.5bn loan guarantee to the company in a bid to support its suppliers. |
Chief executive of Coventry and Warwickshire Chamber of Commerce Corin Crane said replies to a survey it carried out indicated one in six businesses were already making redundancies with others putting workers on zero-hour contracts. | |
Mr Crane said 84 businesses replied to the survey, all from JLR's supply chain. | Mr Crane said 84 businesses replied to the survey, all from JLR's supply chain. |
"They accounted for 30,000 employees, so you can see how big this issue is right across Coventry and Warwickshire, [the] Black Country and Birmingham, and most of those businesses [have] been impacted. | "They accounted for 30,000 employees, so you can see how big this issue is right across Coventry and Warwickshire, [the] Black Country and Birmingham, and most of those businesses [have] been impacted. |
"Nearly half of them have been impacted financially." | "Nearly half of them have been impacted financially." |
'Probably need more' | 'Probably need more' |
Work at JLR's three UK facilities in the West Midlands and Merseyside was halted on 1 September. | Work at JLR's three UK facilities in the West Midlands and Merseyside was halted on 1 September. |
The BBC has understood manufacturing will resume first at the engine facility in Wolverhampton on 6 October, while production at other plants will have a phased return. | The BBC has understood manufacturing will resume first at the engine facility in Wolverhampton on 6 October, while production at other plants will have a phased return. |
Mr Crane said JLR would start paying "their tier one suppliers", but how "the ones below those tiers get paid is a little bit more difficult to pick out." | Mr Crane said JLR would start paying "their tier one suppliers", but how "the ones below those tiers get paid is a little bit more difficult to pick out." |
He added: "That 1.5 billion is great... We probably need more and... need it quickly." | He added: "That 1.5 billion is great... We probably need more and... need it quickly." |
Coventry-based Evtec Automotive, which employs about 600 people, said it had probably laid off about 500 to date. | Coventry-based Evtec Automotive, which employs about 600 people, said it had probably laid off about 500 to date. |
Chairman David Roberts stated: "We're paying them on 80% of their normal pay. | Chairman David Roberts stated: "We're paying them on 80% of their normal pay. |
"That's coming out of our cash flow, obviously." | "That's coming out of our cash flow, obviously." |
Asked whether the government acted quickly enough, he replied: "I'm slightly underwhelmed by the government's response to how they handled it. | Asked whether the government acted quickly enough, he replied: "I'm slightly underwhelmed by the government's response to how they handled it. |
"If the UK wants to have advanced manufacturing capability, if it wants 200,000 people who are employed in the industry to carry on, it's really got to come through a little bit... quicker and more agile to support the supply chain." | "If the UK wants to have advanced manufacturing capability, if it wants 200,000 people who are employed in the industry to carry on, it's really got to come through a little bit... quicker and more agile to support the supply chain." |
Mr Roberts also said the majority of "the tier ones really know their supply chain, so they'll be very strong at making sure that tier two, tier three is supported". | |
Business Secretary Peter Kyle has previously said the loan guarantee would help protect jobs in the West Midlands, Merseyside and elsewhere in the JLR supply chain. | Business Secretary Peter Kyle has previously said the loan guarantee would help protect jobs in the West Midlands, Merseyside and elsewhere in the JLR supply chain. |
"We are offering a £1.5bn credit facility to JLR with the explicit intention that that is to support the supply chain into JLR as well," he said. | "We are offering a £1.5bn credit facility to JLR with the explicit intention that that is to support the supply chain into JLR as well," he said. |
"This is a big moment, this will offer an enormous resource for JLR and the supply chain to get through the immediate challenges that they face." | "This is a big moment, this will offer an enormous resource for JLR and the supply chain to get through the immediate challenges that they face." |
Follow BBC Birmingham on BBC Sounds, Facebook, X and Instagram. | Follow BBC Birmingham on BBC Sounds, Facebook, X and Instagram. |
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