*
Engines, batteries units restart on Wednesday
*
Main production lines restart later this week
*
Offers qualifying suppliers upfront cash payment for parts
*
Quarterly sales volumes drop
(Adds business minister comments in paragraphs 8-9, sales
figures in paragraphs 10-11)
By Sarah Young
LONDON, Oct 7 (Reuters) - Britain's biggest carmaker,
Jaguar Land Rover (JLR), said on Tuesday some factories would
restart manufacturing on Wednesday after an almost six-week
shutdown following a cyberattack, one of the country's most
disruptive hacks.
To try to help smaller parts suppliers who have been pushed
to the brink after weeks without business, JLR also announced it
would be providing some companies with up-front cash for parts
during the production restart phase.
The luxury carmaker, owned by India's Tata Motors,
has three factories in Britain, which together produce about
1,000 cars per day, and economists had warned of the impact of a
prolonged shutdown on the country's manufacturing output.
HIGH PROFILE HACKS
JLR was the latest high profile cyberattack target in
Britain this year, and comes after one of the country's major
retailers Marks & Spencer ( MAKSF ) lost about 300 million pounds
(about $400 million) after a breach forced it to shut down its
online shop for two months.
The incidents highlight the vulnerability of global business
to increasingly sophisticated and more frequent attacks. Last
month, a ransomware attack on check-in services left passengers
stranded across major European airports.
JLR, which analysts estimated was losing around 50 million
pounds per week from the shutdown, was provided with a 1.5
billion pound loan guarantee by the British government in late
September to help it support its suppliers.
Business minister Peter Kyle said in a statement on Tuesday
that his focus was on helping JLR resolve the incident and
supporting the long-term health of the auto supply chain, which
supports over 180,000 manufacturing jobs.
"This is very welcome news for workers and suppliers, but I
know many are still under pressure, particularly further down
the supply chain," he said.
PHASED RESTART
JLR said in a separate statement on Tuesday that for the
three months to September 30, wholesale and retail volumes
dropped 24.2% and 17.1%, respectively, reflecting the impact of
the production stoppage, plus the planned wind down of legacy
Jaguar models and the effect of U.S. tariffs.
"It has been a challenging quarter for JLR," JLR CEO Adrian
Mardell said in a statement.
JLR said its engines and battery units would restart work on
Wednesday, as well as parts of its vehicle production plant
including its body and paint shops, meaning the return of some
of its 33,000 staff to work.
Production lines for the Range Rover and Range Rover Sport
vehicles at its main factory in Solihull will start later this
week, the company added.
Qualifying suppliers of parts used in the company's
just-in-time production lines will now be paid shortly after the
point of order, JLR said, compared to a previous 60-day
post-invoice arrangement, helping to allay fears that some
smaller businesses could go bust.
($1 = 0.7445 pounds)