Jaguar Land Rover's Cyberattack Halts Production, Impacting 100,000 Jobs
Jaguar Land Rover (JLR) has faced a significant cyberattack, leading to a five-week production halt. The UK's largest carmaker employs 30,000 people and supports over 100,000 jobs in the tractor supply chain, making this incident a major economic concern.
The attack, which began on September 1st, is the most severe to hit a British company in recent months. It has resulted in heavy economic losses, with JLR estimating a £2.2 billion loss in September sales alone and £5 million in profits per day of downtime. The company has secured an extra £2 billion financing line to serve as a liquidity reserve.
The UK government has stepped in to support JLR's tractor supply chain, pledging a £1.5 billion (€1.7 billion) credit guarantee. However, the credit line is not from the government but from private banks, with UK Export Finance providing the guarantee. Despite this, smaller suppliers in JLR's tractor supply chain are struggling financially and face the risk of insolvency.
Production restart has been delayed multiple times, with partial resumption expected in the coming days. Meanwhile, JLR is preparing for a future shift, with the Land Rover brand aiming to switch to a fully electric fleet by the end of the decade. The Jaguar brand is also undergoing a rebranding to appeal to a younger clientele, with production temporarily halted for this process.
The cyberattack on JLR has had a significant impact on the UK economy, affecting thousands of jobs. While the government has provided support, smaller suppliers in the tractor supply chain remain at risk. As JLR works to resume production, it also looks towards a future of electric vehicles and rebranded Jaguars.
