The cause isn’t clear, but the impact has already been devastating. More than a month has passed since Jaguar Land Rover (JLR) was targeted in a cyber-attack that forced the car manufacturer to turn off computers and shut factories. Peter Kyle, the business secretary, last week claimed Labour had taken “decisive action” to support JLR’s supply chain, but the government’s promise to guarantee part of a £1.5bn commercial loan looked more like an attempt to weather the party conference than an act of genuine support.
The firm will survive. It made pre-tax profits of £2.5bn last year and has a rich owner. Its suppliers aren’t so lucky. The Guardian has reported that thousands of workers have already been laid off across its supply chain. JLR is paying its direct suppliers, but this money will take time to pass down to smaller firms. The sight of banks asking parts makers to put up their family homes as guarantees for emergency loans is outrageous. Small suppliers shouldn’t have to take on debt to cope with a crisis for which they’re blameless. Either JLR will have to act fast to prevent bankruptcies, or the state will need to step in to funnel cash directly to small parts makers.
