Jaguar Land Rover Extends Production Shutdown Following Cyber Attack
Jaguar Land Rover (JLR) has announced an extension to its production shutdown, initially implemented following a cyber attack. The closure will now last until at least October 1st, impacting production at its UK plants and raising concerns for its extensive supply chain. The automotive manufacturer is headquartered in Coventry.
Impact of the Cyber Attack
The cyber attack, which occurred at the end of August, forced JLR to halt operations across its facilities, including plants in Solihull, Halewood, and Wolverhampton, as well as its engine manufacturing center. The company took its systems offline and sent workers home to manage the issue. According to reports, the company's production facilities in Slovakia, Brazil, India, and China have also been affected.
The financial repercussions of the shutdown are significant. It is estimated that the attack has already cost JLR £1.7 billion in lost revenue. The prolonged disruption could potentially cost the manufacturer hundreds of millions. The luxury carmaker produces around 1,000 cars per day globally.
Supply Chain Concerns and Government Response
The extended shutdown has heightened concerns among JLR suppliers, who rely on the company's "just-in-time" production schedules. Some suppliers have already been forced to pause operations and lay off staff. The Society of Motor Manufacturers and Traders (SMMT) estimates that around a quarter of firms supplying parts to JLR have already taken such measures.
Industry Minister Chris McDonald and Business Secretary Peter Kyle are visiting JLR to assess the situation and discuss support for affected suppliers. The government has stated its commitment to helping Jaguar Land Rover get back up and running and ensuring the long-term health of the supply chain. Trade union Unite has called for a furlough scheme for workers in the JLR supply chain, similar to that implemented during the Covid-19 pandemic.
JLR's Response and Cybersecurity Measures
JLR has stated that it is working with cybersecurity specialists, the government’s National Cyber Security Centre (NCSC), and law enforcement to ensure a safe and secure restart of its operations. The company said it is building a timeline for a phased restart and providing clarity for its colleagues, suppliers, and partners. JLR outsourced its IT systems to Tata Consultancy Services last year. Cybersecurity company SonicWall stated that organizations were under critical attack for an average of 68 days in 2024.
Potential Impact on Employees
According to legal experts, JLR could lawfully dismiss staff because of the cyber attack, provided they follow the correct legal and contractual procedures. Employees may be entitled to a statutory guarantee payment for short periods without work, or a statutory redundancy payment if the lay-off or short-time working continues for an extended period.
Looking Ahead
Speculation suggests the shutdown could potentially last into November, though JLR maintains it is working to restore its systems quickly. The company, employing around 30,000 people and supporting tens of thousands of other jobs in the supply chain, faces increasing pressure to resolve the issue and mitigate further economic impact. Chancellor Rachel Reeves suggested hostile states could be behind the wave of cyber incidents hitting UK businesses.
