Staff at Jaguar Land Rover (JLR) will be out of work for at least another week as the business secretary prepares to meet suppliers of the car maker who are at risk of closure.
JLR has confirmed that production in its factories – including its UK facilities in Solihull, Halewood and Wolverhampton – will remain suspended until at least October 1.
It previously said production would resume on September 24.
The company’s production lines ground to a halt in late August following a major cyber attack, and fears are growing that the company’s suppliers could go bust without support.
Business Secretary Peter Kyle will visit JLR for the first time since the attack to meet with the company and firms in the supply chain for the beleaguered carmaker.
“Our focus remains on supporting our customers, suppliers, colleagues, and our retailers who remain open,” the statement said.
“We fully recognise this is a difficult time for all connected with JLR and we thank everyone for their continued support and patience.”
Industry minister Chris McDonald said he was visiting JLR alongside the business secretary to “host companies in the supply chain, to listen to workers and hear how we can support them and help get production back online.”
He said in a statement: “We have two priorities, helping Jaguar Land Rover get back up and running as soon as possible and the long-term health of the supply chain.
“We are acutely aware of the difficulties the stoppage is causing for those suppliers and their staff, many of whom are already taking a financial hit through no fault of their own – and we will do everything we can to reassure them that the government is on their side.”
Suppliers are anxious to be heard, according to Johnathan Dudley, the head of manufacturing for accounting and consulting firm Crowe UK. The firm is based in the West Midlands, which is where the Solihull and Wolverhampton plants are.
“Obviously, they’re being very, very cautious because they don’t want to create panic, and equally, they don’t want to be seen to be criticising people further up the chain,” he said.
“It’s not a blame game, but it is a cry for help, because there are businesses now seeing people not paying [staff].”
The halt in production had hit profits by about £120m already, and £1.7bn in lost revenue, according to David Bailey, Professor of Business Economics at the University of Birmingham.
JLR is currently taking the lead on support for its own supply chain, rather than any state intervention.
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