Jaguar Land Rover Restarts Production After Cyber Attack, UK Government Steps In With £1.5 Billion Loan
Jaguar Land Rover (JLR) has restarted partial production after a cyber attack that caused a nearly four-week shutdown. The UK government has stepped in, providing a £1.5 billion loan guarantee to support the company and protect jobs in the West Midlands and Merseyside.
The cyber incident, which occurred on 31 August, disrupted the automotive supply chain and led to significant revenue and profit losses. JLR is estimated to be losing at least £50 million per week, with total revenue losses potentially exceeding £3.5 billion and gross profit losses reaching approximately £1.3 billion.
Production at JLR's UK facilities in Solihull, Wolverhampton, and Halewood was affected. While initial hopes were to resume operations by mid-September, investigations extended the halt to four weeks. The Wolverhampton engine facility is expected to restart first on 6 October.
The UK government has provided a loan guarantee to help JLR address a backlog of payments to suppliers and maintain cash flow during the recovery period. The loan facility aims to support the company as it works to mitigate the impact of the cyber attack on its sales performance and financial outlook.
JLR's partial production restart follows a challenging period for the company, which has seen significant financial implications due to the cyber attack. The UK government's £1.5 billion loan guarantee underscores its commitment to supporting JLR and the jobs it provides in the West Midlands and Merseyside. As investigations continue, the recovery timeline remains uncertain, with some industry sources warning of potential disruptions extending into November.
