Suppliers' uncertainty despite JLR expected restart

Michael Beese pictured standing in front of heavy-duty machinery. He has short black hair and a dark stubble beard. He is wearing a white collar shirt with the red Genex UK Limited logo.
Image caption,

Michael Beese said he had to lay off some of his staff

  • Published

The boss of a firm that supplies Jaguar Land Rover (JLR) has said his business still faces an uncertain future as production at the car giant is set to restart following a crippling cyber-attack.

Michael Beese, managing director of Genex UK, which presses metal parts, said there was only "a finite element of cash" available while production was halted.

The majority of his 17-strong team, based outside Walsall, had to be temporarily laid off without pay, he said, and they did not yet have a return date.

He added the criminals behind the attack made him feel "very angry" due to the tens of thousands of people the situation had affected.

About 30,000 people are directly employed at JLR's UK plants with about 100,000 working for firms in the supply chain.

"I think for the staff it's very concerning, worrying, stressful - and I think I'm sharing those same feelings as well," Mr Beese said.

Heavy duty machinery, painted blue, in a factory. There is a set of shelves behind the equipment, with some pieces of metal on it positioned on it.
Image caption,

Workers at Genex UK are waiting to find out when they can return to work

He added he had not wanted his firm to close, preferring to try to keep things going, but that it was difficult as commercial lending rates were too steep.

Mr Beese said he had been offered a loan with a 16% interest rate which also needed a 100% personal guarantee - meaning he risked losing his home if payments were not kept up.

"I've got a good business, I've got a good group of staff with me that are all very capable and I really don't want to lose it," he said.

He welcomed the government's £1.5bn loan guarantee for JLR, believed to be the first time a company has received government help as a result of a cyber-attack, but he questioned the speed at which it might filter down the supply chain to companies like his.

He wanted the government to consider giving securities against loans for smaller businesses as well.

There were many other firms in a similar situation, Mr Beese said, but they were cautious about speaking out.

Meanwhile, he said he was hopeful things might now start to return to normal - if the Wolverhampton engine plant started up again this week, others would start up fairly soon, he added.

Heavy duty machinery, painted yellow and green, in a factory. There is a blue vertical pillar, and metal criss-crossed metal beams attached to horiztonal girders in the roof space.
Image caption,

Mr Beese's company presses metal parts for Jaguar Land Rover

Greater Birmingham Chambers of Commerce has also called on the government to help protect jobs by stepping up support for firms affected by the cyber attack.

It welcomed the announcement of the £1.5bn fund to support affected firms, but said it had not been made clear how businesses would access the fund.

In a letter to the Department for Business and Trade (DBT), the Greater Birmingham, Black Country and Coventry & Warwickshire chambers, which collectively represent 5,000 businesses, also said further measures could be necessary to help businesses further down the supply chain.

'Running out of cash'

The letter to the DBT asked how the government would work with JLR to identify those in greatest need of support and how it planned to ensure money reached the most vulnerable businesses quickly and effectively.

The letter said: "Anecdotally, many firms are telling us they are running out of cash and no guarantee of future sales."

It said offering employer National Insurance Contribution payment holidays would be worth exploring.

A DBT spokesman said: "The cyber-attack on JLR has not only had a devastating attack on the company itself, but also on its supply chain and our priority has been in getting production back up and running and protecting jobs.

"That's why we acted swiftly to protect JLR and to provide the company with liquidity at a key time and we continue working with the company to ensure that the supply chain receives the support it needs."

The department said it was continuing to work with JLR, with support from cyber experts.

JLR is seen as "vitally important" to the automotive sector, employing more than 30,000 people directly, with a further 120,000 in its supply chain, it said.

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