Jaguar Land Rover recently experienced a cyber attack, leading to disruptions in its IT system. The company has initiated a phased restart process to bring back operational capabilities gradually. As a result of the incident, a backlog of payments to suppliers has emerged, impacting production schedules since the cyber attack occurred at the end of August. The car manufacturer has postponed the resumption of production multiple times, with the latest projected date being no earlier than October 1.
In a positive development, Jaguar Land Rover has reported progress in restoring sections of its digital infrastructure. This recovery will empower dealerships to provide vehicle servicing and streamline the sales process. The government, in collaboration with Jaguar Land Rover and its supply chain partners, is actively engaged in supporting the company through this challenging period.
Efforts are underway to assist suppliers affected by the cyber attack. While various support options are being considered, including the purchase and resale of stock by the government, concerns have been raised about the feasibility of such measures. Sir Andy Street has advocated for cash loans to suppliers as a more secure approach. Additionally, reports have surfaced indicating that Jaguar Land Rover lacked insurance coverage against cyber attacks.
Financial implications from the production shutdown are estimated to potentially cost Jaguar Land Rover around £120 million, with escalating losses for each additional week of disruption. The company has ceased operations at its manufacturing facilities in Halewood, Solihull, and Wolverhampton, where over 1,000 vehicles are typically produced daily.
