Jaguar Land Rover (JLR) has faced significant operational challenges over the past two weeks due to a cyber attack that became public on September 1. The incident led the company to shut down its computer systems and halt production globally, affecting factories in Solihull, Halewood, and Wolverhampton, which are expected to remain idle at least until the upcoming Wednesday while damage assessment continues.
Financial experts estimate that JLR has already incurred losses of at least £50 million from the shutdown. The ripple effects of this situation extend to JLR’s supply chain, which includes many small and medium-sized enterprises that are heavily reliant on the carmaker. David Bailey, a professor of business economics, noted that disruptions could jeopardize up to a quarter of a million jobs tied to JLR’s supply network, raising concerns about potential bankruptcies among suppliers.
JLR typically produces over 1,000 vehicles daily at its UK facilities, including its engine assembly site in Wolverhampton. The company has stated that it closed its IT systems to protect against further damage, but this action also halted production due to the high level of automation in its manufacturing and parts supply processes. Although JLR implemented workarounds for sales, the initial confidence in a quick recovery has diminished as the complexity of restarting computer systems became clearer.
There have been reports of layoffs among suppliers, with one supplier indicating that nearly half of its workforce has been let go. Others have instructed employees to remain at home while banking hours to offset future work. Labour MP Liam Byrne has called for governmental assistance to address the financial strains faced by suppliers, emphasizing the importance of supportive measures like a furlough scheme to protect jobs and skills.
In response, Business and Trade Minister Chris Bryant acknowledged the significant impact of the incident and confirmed ongoing communication with JLR and cyber security experts to expedite the resolution of the issue.
Source: https://www.bbc.com/news/articles/czdjn0lv64ro?at_medium=RSS&at_campaign=rss