On September 1, Jaguar Land Rover (JLR) anticipated an increase in demand due to the launch of new number plates. However, production at its factories in Solihull and Halewood was halted after a cyber attack at the end of August, leading to the idling of their production lines. While operations are projected to resume soon, they will do so gradually, potentially taking another month to normalize. The cyber attack has resulted in an estimated loss of £50 million per week, with over a month’s worth of global production already lost.
JLR, which reported a £2.5 billion profit in the last financial year and is owned by Tata Group, faces significant financial impacts but is not alone in this predicament. This year has seen a trend of cyber attacks targeting large corporations, including Marks & Spencer and the Co-op. A government survey indicates that numerous businesses and charities across the UK have suffered from cyber breaches. Experts wonder about the cumulative effects of emerging cyber threats on businesses and whether this is indicative of a broader inaction regarding cybersecurity.
The repercussions of JLR’s attack extend far beyond its walls, affecting a vast network of suppliers, from multinational corporations to small providers. A letter to the Chancellor highlighted the urgent need for financial support for smaller firms that could deplete their cash reserves quickly. Analysts worry that bankruptcies could lead to long-term damage in sectors like advanced engineering.
Furthermore, the intricacies of just-in-time production models utilized by firms like JLR and Marks & Spencer render them particularly vulnerable to cyber disruptions. Industry experts are questioning whether current supply chain strategies adequately account for these risks and emphasize the need for a reevaluation of existing practices in light of increasing cyber threats.
Source: https://www.bbc.com/news/articles/c5ye8zj5l4jo?at_medium=RSS&at_campaign=rss