A cyberattack on Jaguar Land Rover has led to a halt at its plants for nearly a month that has caused a production loss of about 30,000, with analysts warning that a full restart could take much longer and have far-reaching consequences for the company and its suppliers.
The Times reports that British automotive manufacturer Jaguar Land Rover (JLR) has been grappling with the aftermath of a massive cyberattack that forced the company to shut down its global plants at the end of August. The prolonged production halt has not only affected JLR’s operations but also raised concerns about the impact on its extensive supply chain.
According to an analysis of production figures, the cyberattack has cost JLR up to 30,000 cars in lost production. The company recently announced that the production pause would be extended until at least October 1, further exacerbating the situation. This extension is expected to result in tens of millions of pounds in lost revenue for JLR on a daily basis, while also putting jobs and companies in the supply chain at risk.
JLR directly employs more than 30,000 people, and it is estimated that around 200,000 workers in the supply chain depend on work from the company. The prolonged shutdown has raised concerns about the ability of smaller companies further down the supply chain to withstand the financial strain, as many lack the cash reserves to weather such a crisis. The interconnected nature of the automotive industry means that the ripple effects of the cyberattack could extend beyond JLR, potentially affecting other car assemblers such as Toyota or Mini, who share suppliers with JLR.
The government is expected to face the consequences of the cyberattack, either through emergency support measures such as furlough schemes or short-term loans or through increased unemployment benefits if the situation persists. Business Secretary Peter Kyle and Industry Minister Chris McDonald have met with JLR executives to discuss the issue, emphasizing the government’s commitment to supporting the world-leading automotive sector and minimizing the impact of the incident.
JLR’s UK operations are based in the West Midlands and Merseyside, and local MPs have called for the government to use its influence to convene banks and develop a commercial solution to help businesses overcome the cash crunch caused by the cyberattack.
The uncertainty surrounding the extent of the cyberattack and its perpetrators has added to the challenges faced by JLR and its suppliers. The company has stated that it is working to build a timeline for a phased restart of its operations while continuing its investigation into the incident.
Read more at the Times here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
Read the full article here