JLR Extends Production Halt Until October After Cyber-attack

Jaguar Land Rover Extends Production Shutdown Following Cyberattack

Jaguar Land Rover (JLR) has announced a further extension to the shutdown of its production facilities, now lasting until at least October 1st, following a significant cyberattack at the end of August. The attack forced the company to halt its IT networks, impacting production across its UK and international sites. This prolonged disruption raises concerns about the financial stability of JLR's supply chain and the overall resilience of UK manufacturing to cyber threats.

Impact of the Cyberattack

The cyberattack, which occurred on August 31st, has brought JLR's production to a standstill, affecting plants in the UK (Solihull, Halewood, Wolverhampton), as well as facilities in Slovakia, Brazil, and India. The company is working with cybersecurity specialists, the National Cyber Security Centre (NCSC), and law enforcement to investigate the incident and implement a phased restart of operations. The shutdown is estimated to be costing JLR approximately £50 million per week and could result in a significant drop in vehicle production.

• Production halted at UK and international plants.
• Collaboration with cybersecurity experts and law enforcement.
• Estimated cost of £50 million per week.

Government and Union Response

In response to the crisis, Business Secretary Peter Kyle and Industry Minister Chris McDonald are visiting JLR to meet with company representatives and affected suppliers. The government aims to understand the impact on the supply chain and explore ways to support businesses facing financial difficulties due to the production halt. Unite, a prominent trade union, has called for a furlough scheme to protect workers in the JLR supply chain who are experiencing reduced or zero pay.

"We have two priorities, helping Jaguar Land Rover get back up and running as soon as possible and the long-term health of the supply chain...We are acutely aware of the difficulties the stoppage is causing for those suppliers and their staff, many of whom are already taking a financial hit through no fault of their own – and we will do everything we can to reassure them that the government is on their side." - Chris McDonald, Industry Minister

Concerns for the Supply Chain

The JLR shutdown is having a cascading effect on its extensive supply chain, which supports over 100,000 jobs in Britain. Many suppliers, particularly smaller businesses, rely heavily on JLR and face severe liquidity issues due to the production stoppage. Some suppliers have already been forced to pause production and lay off workers. There are increasing calls for government intervention to provide financial support to stabilize affected suppliers and prevent potential bankruptcies.

While JLR is taking the lead on support for its own supply chain, the situation underscores the vulnerability of the automotive industry to cyber threats and the potential for widespread economic disruption. The incident has also raised broader questions about the resilience of UK businesses and the need for improved cybersecurity measures.