Jaguar Land Rover (JLR) has informed its suppliers that production at its facilities will not restart before 24 September, following a significant cyber attack that occurred over two weeks ago. This incident led to a shutdown of JLR’s IT networks, halting production and prompting a criminal investigation. While JLR has characterized certain reports about prolonged operational disruptions as speculation, industry sources have indicated that the effect of the cyber attack could extend into November.
The shutdown is reportedly costing JLR approximately £50 million weekly in lost production. Typically, the company expects to manufacture over 1,000 cars daily at its facilities located in Solihull, Halewood, Wolverhampton, and additional plants in Slovakia, China, and India. Since the cyber attack came to light on 1 September, all production lines have been inactive.
In a recent announcement, JLR stated that the delay has been necessitated by ongoing forensic investigations into the cyber incident, which will dictate the timeline for a controlled restart of global operations. The firm expressed regret over the disruption caused to its operations and pledged to provide updates as their investigation unfolds.
While JLR initially anticipated a quick resolution to the situation, it has become evident that restarting production involves a complex process. The company has acknowledged the possibility that some data may have been compromised. By the end of September, the loss of production days could significantly affect supply chain dynamics, with industry experts warning that some smaller suppliers might face bankruptcy without immediate financial relief.
In response to the ongoing crisis, the Unite union has called for a furlough scheme to support workers affected by the stoppage, emphasizing the need for a robust supply chain as production resumes. The Commons Business and Trade Committee has sought information from the chancellor regarding support for vulnerable businesses within the supply chain. Amid these challenges, a group claiming responsibility for the cyber attack, known as Scattered Lapsus$ Hunters, has also been linked to earlier high-profile attacks on various retailers.
Source: https://www.bbc.com/news/articles/czewlj57e24o?at_medium=RSS&at_campaign=rss