A senior manufacturing expert has issued a stark warning that small businesses within Jaguar Land Rover's (JLR) supply chain remain on the brink of collapse, months after a major cyber attack crippled the carmaker's operations.
Cashflow Crisis Deepens Over Christmas Shutdown
Jonathan Dudley, head of manufacturing at the professional services firm Crowe UK, stated that Tier 2, 3 and 4 suppliers are facing a critical period. The two-week Christmas shutdown of JLR plants could prove fatal for some smaller firms still waiting for delayed payments to filter down from the top.
Mr Dudley explained that while Tier 1 suppliers are largely back in production, with JLR reportedly funding them from its own resources, the situation is far more precarious for smaller enterprises further down the chain. "For some further down the supply chain, in particular SMEs, it could be too late," he cautioned.
A Double Whammy for Vulnerable Businesses
The timing of the plant closures creates a perfect storm, with businesses also having to meet quarterly rent payments. "The coming days and weeks are likely to be confronting," Dudley said. "It will become evident which businesses in the JLR supply chain have managed to weather the storm."
He revealed there are already reports of companies seeking advice over potentially insolvent positions. Furthermore, the disruption has exacerbated existing concerns about UK manufacturing costs, prompting some global suppliers to use the JLR stoppage as a reason to withdraw from the UK entirely.
"Global organisations, who had been manufacturing in the UK, are acutely conscious of the very high industrial energy costs in this country," he added, highlighting a broader competitive disadvantage.
Seeking Solutions Amidst the Uncertainty
The cyber attack, which forced the shutdown of JLR's Solihull and Castle Bromwich plants for weeks in the summer of 2025, continues to have a severe ripple effect. Mr Dudley urged any firm seeing early signs of cashflow distress to seek professional advice immediately.
"There are alternatives," he advised. "New equity, other sources of investment and obviously restructuring are all options that should be considered, but they need to be examined in the round in order to achieve long term, lasting solutions."
Crowe UK, a leading audit, tax, advisory and consulting firm, has offered its support. Businesses within the supply chain seeking guidance can contact Jonathan Dudley directly via email at johnathan.dudley@crowe.co.uk.
