Jaguar Land Rover (JLR) has reported a significant financial loss of £485 million for the quarter ending in September, contrasting with a profit of £398 million during the same period last year. The downturn is attributed to a cyber-attack at the end of August, which incapacitated the company’s computer networks and halted production on its automated lines throughout September and into early October.
During the attack, consumer car sales faced initial disruptions, although JLR was later able to implement alternative solutions. Additionally, the cyber-attack impacted parts supplies to service centers. The company has since indicated that production levels have returned to normal.
In addition to the reported loss, JLR incurred “cyber-related costs” amounting to £196 million. These expenses reflect expenditures for external consultants and other support needed to address the effects of the cyber intrusion. Overall revenues for the quarter fell by 24%, dropping from £6.5 billion last year to £4.5 billion, significantly influenced by the production stoppage. Further contributing factors included new US tariffs on exports and the gradual discontinuation of several Jaguar models ahead of the brand’s transition to an all-electric lineup.
The incident has affected the broader automotive industry, contributing to a drop in UK car production to its lowest level for September since 1952, according to the Society of Motor Manufacturers and Traders. The Office for National Statistics noted that the reduction of around 27,000 vehicles resulted in a 0.17% decrease in economic output for that month.
JLR’s supply chain, consisting of numerous businesses globally—including many in the UK—has also faced challenges due to the production stoppage, leading to concerns about potential bankruptcies. In response, the government has provided guarantees for JLR to secure loans totaling up to £1.5 billion to support its supply chain, while the company itself has initiated a financing scheme to facilitate early payments for suppliers with new orders.
Source: https://www.bbc.com/news/articles/ckg1w255gy1o?at_medium=RSS&at_campaign=rss