Jaguar Land Rover (JLR) has told suppliers its UK factories will remain closed until at least 24 September following a major cyber attack that has paralysed production. Industry insiders warn disruption could stretch into November, raising fears for the carmaker’s supply chain.
Cyber Attack Halts Production
The hack, which hit more than two weeks ago, forced JLR to shut down IT systems across its operations, halting output at plants in Solihull, Halewood and Wolverhampton, as well as facilities in Slovakia, China and India.
All production lines have been idle since 1 September, with losses estimated at around £50m a week. JLR normally builds more than 1,000 vehicles a day.
A criminal investigation is under way, and the company has acknowledged that some data may have been accessed or stolen by attackers.
Delays and Uncertainty
In a statement announcing the latest delay, JLR said:
“We have taken this decision as our forensic investigation of the cyber incident continues and as we consider the different stages of the controlled restart of our global operations, which will take time. We are very sorry for the continued disruption this incident is causing.”
While JLR has dismissed reports of months-long disruption as “speculation”, industry figures say the process of restarting production is complex and recovery could take weeks after operations resume.
Supply Chain Strain
The shutdown is causing mounting pressure on JLR’s network of suppliers, many of whom are small or medium-sized firms. Several have told the BBC they do not have the cash reserves to withstand an extended suspension of orders.
Unite the union warned that redundancies may already be on the horizon. Jason Richards, the union’s West Midlands regional officer, said:
“We’re already seeing employers having discussions on potential redundancies. People have to pay rent, they have to pay mortgages and if they’re not getting any pay, what are they supposed to do?”
He added: “We need to have a supply chain into Jaguar Land Rover. If they turn the tap on and expect the supply chain to be waiting, they won’t be there.”
Wider Impact
Owned by India’s Tata Motors, JLR is Britain’s largest car manufacturer and a cornerstone of the West Midlands economy. Any prolonged stoppage not only hits the company’s bottom line but also risks rippling through the wider automotive industry.
By 24 September, the firm will have lost three and a half weeks of production. Analysts say restoring output to normal levels could take several more weeks, even if systems are brought back online as planned.
For now, the uncertainty is deepening worries across the industry that what began as a cyber security breach could quickly turn into a full-scale economic crisis for JLR and its suppliers.
