Support for JLR supply chains as production resumes
Following the criminal cyber attack on the luxury car maker JLR in August, production at its factories resumed in October, including at the Battery Assembly Centre (BAC) at Hams Hall, Coleshill. The company has lost weeks of production just as the new number plates were being introduced in the UK and is incurring high costs to replace and upgrade IT and software systems.
JLR support for direct suppliers
JLR has negotiated a loan guarantee from the UK government, and separately fast-tracked a new financing scheme that will provide qualifying JLR suppliers with cash‑up‑front during the production restart phase:
Since the cyber incident, JLR has introduced solutions to support its suppliers, including establishing a dedicated supplier help desk and implementing a manual payment system to settle outstanding invoices, and this week re‑establishing automated supplier payment systems.
With the new scheme, qualifying JLR suppliers will be paid much faster than under their standard payment terms, aiding their cashflow in the near term. Following an initial phase with qualifying JLR suppliers critical to the restart of production, the scheme will be expanded, including to some non‑production suppliers.
Working with a banking partner, this short‑term financing scheme means qualifying JLR suppliers will receive a majority prepayment shortly after the point of order and a final true‑up payment on receipt of invoice. JLR’s typical supplier payment terms are 60‑days post invoice, so this scheme accelerates payments by as much as 120 days. JLR will reimburse the financing costs for those JLR suppliers who use the scheme during the restart phase, as the company returns to full production.
This move follows steps taken by JLR during September to prudently bolster its liquidity, following the interruption to business since the cyber incident.
Source JLR:
https://media.jaguarlandrover.com/news/2025/10/jlr-restarts-manufacturing-and-introduces-new-financing-solution-pay-jlr-suppliers
Help for indirect JLR suppliers in Warwickshire
The impacts of the cyber-attack on the supply chain are likely to continue for some time, and this has left many Warwickshire manufacturers uncertain about contracts, liquidity, and future investment. The Warwickshire Manufacturing Growth Programme can help SMEs access tailored support to:
- Strengthen resilience through expert advice and business diagnostics
- Identify opportunities to boost productivity and competitiveness
- Access coaching to help you diversify and enter new markets
- Access funding and support to improve your cyber-security
- Access to Capital Expenditure grants to invest in your business
The experienced team from Oxford Innovation work directly with businesses to remove barriers to growth and create measurable outcomes that protect jobs and unlock future opportunities.
Learn more about the Warwickshire Manufacturing Growth Programme here:
https://www.warwickshire-mgp.co.uk/