Production at JLR’s UK factories was suspended on 1 September after a major cyber incident disrupted its IT systems. The shutdown has left thousands of workers in the supply chain facing uncertainty, including staff at major component manufacturers Gestamp and Schaeffler, which both operate large facilities in Dafen, Llanelli.
Dame Nia said the Government’s intervention was welcome but stressed that the benefits must reach Carmarthenshire quickly.
“The situation was perilous and there was concern for jobs at a number of companies. The loan will bolster JLR’s cash reserves enabling it to pay back companies in its supply chain.
I urge JLR to ensure it gives the maximum support to the firms in my constituency who have been involved in supplying them for some years. Speed is of the essence to ensure local companies benefit from the rescue deal announced by the Government and to help their loyal workforce.”
She added that while the £1.5 billion loan guarantee would provide certainty, JLR must now act swiftly to roll out payments and restore its IT systems to allow deliveries and pick‑ups to resume.
Government support package
The loan guarantee, announced by Business Secretary Peter Kyle, is designed to unlock up to £1.5 billion in private finance for JLR. Backed by the Export Development Guarantee, the loan will be repaid over five years and is intended to give certainty to the company’s extensive supply chain.
Mr Kyle described the cyber‑attack as “not only an assault on an iconic British brand, but on our world‑leading automotive sector and the men and women whose livelihoods depend on it.”
Chancellor Rachel Reeves said JLR was “a jewel in the crown of our economy”, adding that the package would protect thousands of jobs and support the wider supply chain.
JLR recovery underway
JLR has issued a series of updates throughout September as it works to restore its systems and restart production. In its latest statement today (29 September), the company confirmed that some sections of its manufacturing operations will resume “in the coming days” as part of a phased restart.
The company said:
“As the controlled, phased restart of our operations continues, we are taking further steps towards our recovery and the return to manufacture of our world‑class vehicles. Today we are informing colleagues, retailers and suppliers that some sections of our manufacturing operations will resume in the coming days.”
JLR added that it was working “around the clock” with cybersecurity specialists, the UK Government’s National Cyber Security Centre and law enforcement to ensure the restart was carried out safely. It thanked staff, suppliers and customers for their patience, saying the “foundational work of our recovery is firmly underway” but acknowledged there was “much more to do”.
Local impact
The shutdown has highlighted the vulnerability of JLR’s vast supply chain, which employs around 100,000 people across the UK. For Llanelli, where Gestamp and Schaeffler are key employers, the disruption has been particularly concerning. Both firms supply components directly to JLR, meaning the pause in production has had an immediate knock‑on effect for their operations and workforce.
Dame Nia Griffith said the Government’s loan guarantee must now translate into real support for those local businesses:
“I very much welcome this support put in by the UK Labour Government, but now we need JLR both to implement it in a timely fashion in order to safeguard jobs in our local plants, and to get the replacement IT systems up and running to enable the necessary deliveries and pick‑ups.”
