Jaguar Land Rover Resumes Production After Cyberattack, UK Govt & Banks Provide £3.5B Support
Jaguar Land Rover, the British automaker, has faced a challenging time after a cyberattack in early September. Production at its UK factories has been temporarily halted, and the restart has been delayed multiple times. The company, which employs 30,000 people and supports over 100,000 jobs in its supply chain, is now expected to resume partial production in the coming days.
The cyberattack, which occurred on September 1st, has led to a significant impact on Jaguar Land Rover's operations. The company has been forced to halt production at its three UK factories in the West Midlands and Merseyside for five weeks. This pause in production is not only affecting Jaguar Land Rover but also its suppliers, many of whom are struggling to pay wages and face insolvency risks.
To mitigate the financial strain, Jaguar Land Rover has secured a £2 billion liquidity facility from private commercial banks. This is independent of the UK government’s £2 billion loan guarantee. The company is also set to receive a 1.5 billion pound state-backed loan guarantee to support its supply chain. The cyberattack is estimated to cost the company significantly, with potential September sales losses of 2.2 billion pounds and daily profit losses of 5 million pounds.
In the midst of these challenges, Jaguar Land Rover is also undergoing a rebranding effort for the Jaguar brand to appeal to a younger clientele. Production was halted for this purpose in 2023. Meanwhile, the Land Rover brand is preparing for a full transition to electric vehicles by the end of the decade.
Jaguar Land Rover's cyberattack has had far-reaching effects, impacting not just the company but also its extensive supply chain. With partial production resuming in the coming days, the company is taking steps to secure its financial health. The UK government and private commercial banks have provided support, and the company is also preparing for a future focused on electric vehicles and a rebranded Jaguar.
