Jaguar Land Rover Resumes Production After Month-Long Cyber Attack
Jaguar Land Rover (JLR) has partially resumed manufacturing operations following a cyber attack that caused a nearly month-long production halt, highlighting the vulnerability of modern manufacturing to digital threats and the potential cascading effects on supply chain networks.
The attack, which occurred on 31 August, significantly disrupted JLR's operations and the wider automotive supply chain. It forced a four-week production halt, with partial production resuming later than initially hoped. The recovery timeline remains uncertain, with industry sources warning of potential extensions into November. JLR acknowledges that there is still much work to do before operations return to normal.
The production halt has had a substantial impact on JLR's financial outlook. Estimated consolidated EBITDA for fiscal year 2025-26 has been reduced to around $850 million. JLR is likely losing at least £50 million per week due to the stoppage, with total revenue losses potentially exceeding £3.5 billion and gross profit losses reaching approximately £1.3 billion.
The UK government has stepped in to provide support, underwriting a £1.5 billion loan guarantee to protect jobs in the West Midlands, Merseyside, and throughout the supply chain. This move aims to help JLR address a backlog of payments to suppliers. Production at JLR's UK facilities in Solihull, Wolverhampton, and Halewood was affected, with the Wolverhampton engine facility expected to restart first on 6 October.
The cyber incident at JLR serves as a stark reminder of the potential disruptions digital threats can cause in modern manufacturing. The full extent of the financial impact and the timeline for a complete recovery remain uncertain. The UK government's loan guarantee, however, demonstrates its commitment to supporting the automotive industry and protecting jobs.
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