JLR’s Factories Have Not Yet Begun Producing Anything

Jaguar Land Rover (JLR) is still unable to make cars at any of its global factories three weeks after a cyberattack “crippled” its business—and now there are growing concerns that those in its supply chain could go bankrupt.

The Jaguar and Land Rover maker was the target of hacking attacks on September 1 and is still in the process of rebuilding its computer systems. The group that attacked Marks & Spencer earlier this year claimed responsibility for this attack as well.

The attack led to production shutdowns at all of JLR’s global factories, problems with ordering parts, and a “choke” of dealers. The time frame for solving the problem has yet to be announced.

The fallout could cost JLR up to £5m a day, business economics professor David Bailey told Autocar magazine last week.

Last Wednesday, JLR confirmed that data was affected by the cyberattack, so customer data is believed to have been stolen. JLR told Autocar today (Monday, 15 September) that there was no official information, but reports over the weekend suggested some of the firm’s suppliers could go bankrupt due to the disruption.

“It wouldn’t surprise me at all to see bankruptcy,” former Aston Martin chief executive Andy Palmer told the BBC. He added that many suppliers will soon begin downsizing as a result of the closures

“If you hold back in the first week or so after the shutdown, you’re taking a loss. But then you get into the second week and you’re making serious cuts. So layoffs are already happening or planned,” Palmer says.

To prevent widespread job losses, the government is facing calls to set up a redundancy program similar to that used during the coronavirus pandemic. This would involve the government subsidizing workers’ wages until they are unable to perform their jobs, thereby taking the burden off their employers.

• Also See: JLR CEO Behind Jaguar’s Controversial Rebrand And Shift To An All-electric Brand To Step Down