JLR Restarts Production After Month-Long Cyber Attack
Jaguar Land Rover (JLR) has restarted production after a month-long cyber attack that severely disrupted its supply chain. The UK government stepped in, granting a £1.5 billion loan guarantee to help the automaker resume operations.
The attack, which occurred on 31 August, forced JLR to halt production at its UK facilities on 1 September. Initially expected to resume by mid-September, the shutdown was extended multiple times. The disruption has had a significant impact on JLR's sales performance and financial outlook, with Moody's downgrading Tata Motors' outlook and estimating a substantial reduction in consolidated EBITDA.
The production stoppage is costing JLR dearly, with estimates suggesting it's losing at least £50 million per week. Total revenue losses could exceed £3.5 billion, and gross profit losses may reach approximately £1.3 billion. The disruption has also affected around 200,000 workers across hundreds of companies in JLR's supply chain, with some smaller suppliers facing layoffs and bankruptcy.
To help JLR address a backlog of payments to suppliers and maintain cash flow, the UK government underwrote a £1.5 billion loan guarantee. The phased restart of operations aims to restore IT systems gradually while maintaining security protocols, but industry sources warn of potential disruptions extending into November.
JLR's production restart comes as a relief to the automotive industry and the many workers dependent on the company's supply chain. The £1.5 billion loan guarantee from the UK government has been crucial in facilitating this recovery. However, the full extent of the financial impact and the timeline for a complete recovery remain uncertain.
